IAG joint venture may go public
Australian firm holds a significant stake in Indian business
IAG joint venture may go public
INSURANCE NEWS
By Mina Martin
20 Jun 2017
A joint venture between a Sydney-based multinational insurance company and an Indian banking and financial services firm is mulling over taking its general insurance business public next fiscal - but has dismissed any such move this year.

SBI General Insurance, a provider of health, motor, travel, and home insurance, is a joint venture between IAG and State Bank of India (SBI), where the Australian insurer holds a 26% stake, while SBI owns 74%.

“It has reported profit in 2016-17 and we will wait for a year or so before going for IPO,” Dinesh Kumar Khara, SBI MD (associates and subsidiaries), told Press Trust of India (PTI).

Khara revealed, however, that the insurer’s life division will go in for the IPO within a few months, wherein SBI will offload an 8% stake, while its foreign partner Cardif proposes to sell 4%.

Speaking about SBI General Insurance, Khara said it achieved break-even in 2016-17 and posted a Rs 153 crore profit as against a Rs 120 crore loss the year before, PTI reported.


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