Japanese general insurance company Sompo Japan Nipponkoa Insurance will buy part of the stake owned by Karnataka Bank in the Indian joint venture insurance company Universal Sompo General Insurance Company. The Japanese insurer would pay Rs 125 crore to buy 6% stake from the bank, which has 14.26% stake in the Indian JV. Universal Sompo chairman O N Singh said another promoter of the joint venture Dabur Investment Corporation would buy2% stake in the company from the bank for Rs 42 crore. The transactions are awaiting approval of the Insurance Regulatory & Development Authority of India. Singh said this would reinforce the attractiveness of the general insurance industry.
