Japan's SOMPO Insurance is discussing an increase in its stake in Universal SOMPO General Insurance. The Japanese firm aims to buy shares from Indian shareholders to achieve majority ownership.
The move comes after the Indian government liberalized foreign direct investment norms in the insurance sector. Universal SOMPO has recorded strong growth and profitability in recent years.
Additional capital from the transaction would support the company's plans for expansion and technological upgrades. Existing Indian shareholders include Karnataka Bank and Dabur Investment Corp.
The discussions remain at an early stage with no final agreement announced.
