Sompo Japan Nipponkoa ups stake in Indian unit

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Sompo Japan Nipponkoa Insurance will acquire a further 6% in Indian firm Universal Sompo General Insurance.

According to reports, the Japanese insurer is looking at spending Rs1.25 billion (US$18.5 million) to buy the additional stake from Karnataka Bank, which holds 14.26% of the joint venture, according to Universal Sompo chairman ON Singh.

In a related development, non-bank promoter Dabur Investment Corporation is also planning to purchase a stake of about 2% in the company from the private sector lender for Rs420 million.

At the moment, the deals are subject to the approval of the Insurance Regulatory & Development Authority of India.

For observers, these future deals are seen to strengthen the appeal of the general insurance industry as a whole.

If approved, Sompo’s stake would rise to 34.6% after the deal, while Dabur’s would climb to 12.8%.

This post was syndicated from InsuranceAsia News. Click here to read the full text on the original website.

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