SBI JV with Australian insurer for entering general insurance sector

State Bank of India (SBI) entered into an agreement with Insurance Australia Group (IAG) of Australia to start a general insurance business. The undertaking is likely to start its operation in this financial year, subject to regulatory approvals.

The equity proposition is split in a proportion of 74:26 between SBI and IAG, based on Reserve Bank and India (RBI) approval.

IAG specializes in technical and underwriting expertise, pricing and risk management, it has attained goodwill while working with Asian region partners, hence they are being considered for this venture.