(Adds details on deal, context)
Oct 17 (Reuters) - Insurance Australia Group on Thursday said it will sell its 26% stake in India’s SBI General Insurance for about A$640 million ($432.38 million) to private equity firms as it trims overseas holdings to focus on its domestic market.
Premji Invest and a Warburg Pincus affiliate will buy 16.01% and 9.99% interests in SBI General, respectively, IAG said in a statement.
IAG had flagged discussions for the sale in August during its annual results, which had missed market expectations due to higher natural disaster claims.
“With our sharpened focus on our core territories of Australia and New Zealand, now is the right time for IAG to exit its investment in SBI General,” Chief Executive Peter Harmer said in a statement.
The insurer said it expects a net gain of more than A$300 million from the sale, which would be reflected in its fiscal 2020 results.
SBI General was established in 2009 as a joint venture with State Bank of India.
$1 = 1.4802 Australian dollars Reporting by Ambar Warrick in Bengaluru Editing by Chris Reese and Sam Holmes