SBI Life at record high after IAG decides to sell stake in JV

SBI and IAG currently own 70 percent and 26 percent stake.

Shares of SBI Life Insurance Company zoomed to record high of Rs 921.50, rising more than 5 percent intraday on October 17 after Australia's IAG decided to sell its 26 percent stake in SBI General Insurance

SBI General is a joint venture between State Bank of India (SBI) and Insurance Australia Group (IAG).

SBI and IAG currently own 70 percent and 26 percent stake.

Upon completion of the transaction, SBI will continue to hold 70 percent and Napean Opportunities LLP (an affiliate of Premji Invest) will hold 16.01 percent stake. The other shareholders would be WP Honey Wheat Investment, with 9.99 percent stake; PI Opportunities Fund-1: 2.35 percent and Axis New Opportunities AIF - I: 1.65 percent.

Emkay has maintained buy call on the stock with a target price at Rs 991 and Prabhudas Lilladher also maintained buy rating on the stock with a target price at Rs 991.

SBI Life Insurance posted a 48.2 percent year-on-year (YoY) drop in its September quarter net profit to Rs 129.84 crore. Earnings were impacted as the insurer made a Rs 70.3 crore of provisions for diminution in value of investments in Q2FY20, otherwise earnings matched analyst expectations. No such provisions were made in the year-ago period.

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