Insurance Australia Group Ltd (IAG) has decided to raise its stake in SBI General Insurance, a joint venture with the State Bank of India, from 26% to 49%. The IAG has made this decision within few days of Parliament clearing the Insurance Bill. SBI General, a 74:26 joint venture between SBI and IAG of Australia, began its operation in 2010. Now the SBI will dilute its stake in SBI General Insurance from 76 percent to 51 percent.
Max Bupa, a health insurer, is a joint venture between Max India (with 74% stake) and U.K.-based global healthcare group Bupa (26%). In January, Bupa Insurance had said that it would raise stake to 49 per cent from the current 26 per cent. This company also commenced its operations in 2010.
Some other Indian banks that have insurance joint ventures with foreign partners may also look at diluting stake in the future, but not immediately.