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Sompo increases stake in Universal Sompo General Insurance to 34.6%

21 December, 2018 12:04 PM
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Sompo increases stake in Universal Sompo General Insurance to 34.6%

After buying stake from Karnataka Bank, Sompo Japan Nipponkoa is the largest shareholder in Universal Sompo

Sompo Japan Nipponkoa Insurance, a wholly owned subsidiary of Japan’s Sompo Holdings, has raised its ownership to 34.6 percent from 28.4 percent in Universal Sompo General Insurance. The company announced that with this transaction, they have become the largest shareholder in the general insurer.

"Sompo Holdings entered the Indian market via an investment in USGI in 2007, and seeing further growth possibilities, adopted a policy of further expanding business with retail business set as the priority field," said the company in a statement.

The Insurance Act (Amendment) Act 2015 had allowed foreign partners in insurance companies to hold upto 49 percent stake. Sompo Holdings said that because of relaxation of regulations on foreign investment in Indian insurance companies in March 2015, they considered increasing its ownership in the insurer.

Recently, Sompo Japan Nipponkoa acquired 6.2 percent of the shares held by Karnataka Bank, thereby raising its ownership. Among other shareholders, Allahabad Bank holds 28.52 percent stake and Indian Overseas Bank holds 18.06 percent stake while Karnataka Bank holds 6 percent (post share transfer). Further, Dabur Investment Corporation (Partnership Firm) holds 12.81 percent stake.

The company said that because of continual economic growth, the Indian property and casualty insurance market has been expanding about 17 percent on average annually since 2007 and will reach about 2 trillion Yen.

As part of Sompo's direct commitment to Universal Sompo, it has also appointed an executive officer to the position of Deputy CEO of the insurer.

Source: moneycontrol.com

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