The company intends to increase its stake to 45% in Shriram Insurance
Sanlam, a South African insurance major, has announced plans to further increase its stake in Shriram Life Insurance and Shriram General Insurance. The company is willing to raise its stake upto 45%, provided the Indian government raises foreign direct investment (FDI) ceiling in the insurance sector.
At present, Sanlam owns 26% stake in Shriram Life as well as Shriram General Insurance.
Johan van Zyl, Chief Executive, Sanlam, said: We see moves towards lifting FDI ceiling from 26 per cent to 49 per cent, which we hope is imminent.”
The bill to amend the Insurance Regulatory and Development Authority Act, in order to increase FDI ceiling in the private insurance companies to 49%, is pending for the Government approval.