By Robb M. Stewart

MELBOURNE, Australia--Insurance Australia Group Ltd. (IAG.AU) said Thursday it has agreed to sell its 26% stake in SBI General Insurance Co., a joint venture with State Bank of India (500112.BY), for more than 640 million Australian dollars (US$432.6 million).

The exit will be done through two deals, selling an interest of just over 16% in the venture to Napean Opportunities LLP and a 9.99% stake to an affiliate of Warburg Pincus LLP.

The sales, which are subject to regulatory approvals, are expected to complete during the 2020 financial year and IAG said it expected to see a lift of more than A$400 million in its regulatory capital and a net profit of more than A$300 million.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

October 16, 2019 18:13 ET (22:13 GMT)

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