Warburg Pincus Explores Sale of Stake in SBI General Insurance
U.S.-based private equity firm Warburg Pincus is in talks to sell its 10% stake in State Bank of India’s (SBI) general insurance unit, SBI General Insurance, according to a Bloomberg News report citing people familiar with the matter. The potential transaction could value SBI General Insurance at up to $4.5 billion.
Warburg Pincus is negotiating with Premji Invest, the investment arm of Indian billionaire Azim Premji, and SBI, the country’s largest lender, regarding the potential divestment. In 2019, Premji Invest and a Warburg Pincus affiliate acquired stakes of 16.01% and approximately 10%, respectively, in SBI General Insurance in a deal valued at $432.38 million. SBI currently holds about 70% of SBI General Insurance.
Reuters was unable to independently verify the report, and requests for comment from Premji Invest and SBI were not immediately responded to. Warburg Pincus declined to comment on the matter.
The news comes as the Indian insurance sector continues to attract significant investment interest. SBI General Insurance, being one of the prominent players in the general insurance market, is likely to draw considerable attention from potential investors.
