SBI General Insurance Company Limited is an insurance joint venture between India’s largest banking entity, State Bank of India and Insurance Australia Group (IAG). They held shares in the joint venture in the ratio of 70% and 26% respectively. The Australian company is now exiting the Indian venture completely, selling its 26% holding to two buyers, Premiji Invest and the Warburg Pincus Group. These investors are picking up 16.01% and 9.99% of the shares respectively.
Once these mandatory approvals come through, the new shareholding pattern in SBIG will read State Bank of India will hold 70% (no change); Napean Opportunities LLP (an affiliate of Premji Invest) will hold 16.01%; WP Honey Wheat Investment Ltd (Warburg Pincus Group) will hold 9.99%, PI Opportunities Fund-1 will hold 2.35% and Axis New Opportunities AIF – I will hold 1.65%. Premji Invest is the investment vehicle of Azim Premji, Founder Chairman of the Wipro Group. Warburg Pincus is a PE firm with $79 billion invested in over 880 companies worldwide.
Peter Harmer, Managing Director and Chief Executive Office, IAG said, “IAG has enjoyed a strong and successful relationship with the State Bank of India since establishing the SBIG joint venture in 2009. With our sharpened focus on our core territories of Australia and New Zealand, now is the right time for IAG to exit its investment in SBIG.”
Having commenced its operations in2010, SBI General Insurance Company Limited offers a wide range of insurance products, both for individual clients as well as for corporate/business customers. Motor, Health, Personal Accident, Travel and Home Insurance are products within the retail space and covers for Aviation, Fire, Marine, Package, Construction & Engineering, Liability & Cyber Defence Insurance are offered in the commercial space. Being part of the SBI Group, SBIG is able to service even remote areas in the country through is 10,000+ agents. SBI’s over 22,000 branches offer the insurance arm a huge benefit and it takes full advantage of the same.
“State Bank of India welcomes Premji Invest and Warburg Pincus as our Incoming shareholders in SBIG. SBIG has a high-quality management team having an institutional framework with systems and processes in place. This is demonstrated through consistent high growth and positive underwriting results. We extend our heartfelt appreciation to IAG, the outgoing partner, who has progressively collaborated with us in building SBIG to the level where it stands today,” Dinesh Kumar Khara, Managing Director, (GB&S), SBI, said.