Warburg Pincus is in active talks to divest its 10% stake in SBI General Insurance, with discussions reportedly underway with Premji Invest and SBI, the insurer’s majority shareholder. 

The transaction could value the company at approximately $4.5bn, according to sources familiar with the matter.

The move is consistent with Warburg Pincus’s investment strategy, which focuses on acquiring significant minority positions in high-growth companies and executing strategic exits once value creation milestones are achieved.

SBI General Insurance, a subsidiary of State Bank of India, is among the country’s leading general insurers. Established in 2009 and operational since 2010, the Mumbai-based firm employs more than 8,000 people and operates through an extensive multi-channel distribution model spanning bancassurance, retail, agency, broking, and digital platforms.

Warburg Pincus acquired the stake in 2019 alongside Premji Invest in a deal then valued at $432m. The current sale discussions could significantly reshape the company’s ownership structure and may attract other strategic or institutional investors keen to gain exposure to India’s expanding insurance market.

The negotiations follow a recent pattern of portfolio rotation by Warburg, including the joint acquisition, alongside Temasek, of a majority stake in UK-based insurance intermediary Specialist Risk Group in late 2024.

Warburg Pincus declined to comment. SBI and Premji Invest have not responded to press inquiries at the time of writing.

Source: Bloomberg

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