Fairfax to sell 25% stake in JV to get new insurance license

Posted On: Mar. 30, 2017 5:00 AM CST

The Insurance Regulatory and Development Authority of India has asked Canada-based insurer Fairfax Financial Holdings Ltd. to sell 25% of its stake in India-based joint venture ICICI Lombard General Insurance Co. Ltd. before applying for a license to operate another general insurer in the country, The Economic Times reported. Fairfax has applied for a second license to form a new India-based JV Oben General Insurance Ltd. The Indian Insurance Act allows foreign promoters to hold up to 49% stake in a JV and up to 10% stake as an investor in any insurer.