IAG eyes stake hike in SBI General Insurance

Insurance Australia Group (IAG), the foreign joint venture partner in SBIGeneral Insurance, has started talks with the State Bank of India (SBI) for hiking its stakes to 49 percent, said a senior company official Monday.

He said the company is targeting 50 percent growth next fiscal over the current year's expected premium of INR1,600 crore.

"Talks with State Bank of Indiahave commenced on increasing the stakes in the company. The shareholder's agreement provide for increasing stakes in the company," IAG's deputy CEO Steve Hollow told reporters.

The Australian group is also waiting for parliament's approval to the insurance law that allows foreign holding up to 49 percent, he said.

The central government recently passed the insurance ordinance allowing increasing the foreign equity holdings up to 49 percent. However the overseas partners in the Indian insurance companies are waiting for parliamentary approval for the law before committing their money.

The SBI holds 76 percent stake in SBI General Insurance while IAG holds 26 percent.

As to the target for next fiscal, he said it is 50 percent of current year's premium. Queried about the manner in which the ambitious target would be achieved, he said major portion would come from the motor insurance portfolio.