Business

SBI enters general insurance

SBI Chairman O. P. Bhatt

MUMBAI: State Bank of India (SBI) on Monday announced that it has entered into a joint venture agreement with Insurance Australia Group (IAG) of Australia for its proposed foray into the general insurance business and would be approaching regulatory authorities for necessary approvals. The company hopes to commence business in the next financial year and aspires to be among the top three players in the general insurance space in the medium term.

With the entry of SBI into the general insurance business, the bouquet of financial products offered by the group ensures its foot prints in every area of financial services. The bank is already offering life insurance products through its subsidiary SBI Life Insurance Company of India. IAG is an international general insurance group, with operations in Australia, New Zealand, Thailand, Malaysia, China and the U.K. through various brands. Its current businesses underwrite more than Australian $7.5 billion of premium annually. It employs around 15,000 people of which around 10,000 are in Australia.

SBI Chairman O. P. Bhatt said that the joint venture was part of the bank’s strategic initiatives to retain its position as the pre-eminent financial services group in India. IAG Managing Director and Chief Executive Officer Michael Wilkins said “Entering the Indian general insurance market has been a priority for IAG for some time, to support our longer term growth and profitability.” Equity participation is proposed at 74:26 between SBI and IAG respectively subject to Reserve Bank of India approval.

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