Sompo Japan to Buy 6% More Stake in Universal Sompo General Insurance
Updated On Jun 18, 2019
Japanese general insurer Sompo Japan Nipponkoa Insurance would pay Rs. 125 Crore to buy 6% more stake in Universal Sompo General Insurance. The insurance company has Indian Overseas Bank, Karnataka and Allahabad Bank as its promoters. Once the transfer is completed, Karnataka Bank's stake in the general insurance company will drop to 6% from 14.26% at present.
The Chairman of Universal Sompo, O. N. Singh stated that Sompo would buy the stake from Karnataka Bank, which holds 14.26% in the joint venture. 2% stake in the company will also be bought by non-bank promoter Dabur Investment Corporation from the private sector lender for Rs. 42 Crore.
The deals are awaiting the approval of IRDA (Insurance Regulatory and Development Authority). It would reinforce the attractiveness of the general insurance industry that has seen entities such as Prem Watsa’sFairfax break from ICICI Lombard in the year 2017.