PremjiInvest, Carlyle, ChrysCapital, GIC in race to acquire 26% in SBI General Insurance

Photo: Reuters

PremjiInvest, Carlyle, ChrysCapital, and GIC of Singapore are amongst the six private equity firms that are in talks with Insurance Australia Group (IAG) to acquire its 26 per cent stake in SBI General Insurance for about Rs 3,000 crore (approximately $435 million), according to a report by ET.

The proposed transaction pegs the valuation of SBI General Insurance at Rs 12,000 crore (approximately $1.74 billion), the report further added, quoting sources.

Talks are at an advanced stage and the deal, if fructifies, is likely to be announced soon, following which it will go up to the insurance regulator IRDAI for its approval. It is understood that Goldman Sachs is facilitating the proposed transaction.

SBI General Insurance, the eight largest private sector general insurer, is a joint venture between the State Bank of India and IAG, wherein the former currently owns as much as 70 per cent of the total capital. Last year in September, SBI had sold its 4 per cent stake in SBI General Insurance to Axis New Opportunities Fund and PremjiInvest, at a valuation of Rs 12,000 crore.

It is understood that the biggest Australian general insurer had acquired the stake in the JV in 2010 for as much as Rs 542 crore.

So far, a host of PE giants have evinced interest in picking up stake in the Mumbai-headquartered insurer. It may be a situation that some of the shortlisted PE firms team up with each other to purchase the stake in SBI General Insurance.

The development comes at a time when IAG has kickstarted an initiative to restructure its operations in the Asia-Pacific region to focus on New Zealand and Australia. The company has already exited its businesses in Indonesia, Thailand and Vietnam.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.