German insurer ERGO International has agreed to buy a 22.9 per cent stake more in its general insurance joint venture with Housing Development Finance Corporation for Rs 1,122 crore ($168 million).

ERGO's stake in HDFC ERGO General Insurance will now rise to 48.74 per cent while HDFC’s stake will fall to 50.73 per cent, the Indian mortgage lender said in a statement on Thursday.

The proposed transaction values HDFC ERGO at Rs 4,900 crore.

ERGO becomes the latest foreign company to increase holding in an Indian joint venture after the government eased the foreign investment limit in the insurance sector to 49 per cent from 26 per cent.

HDFC ERGO offers general insurance products ranging from motor, health, travel, home, personal accident. It also offers customised services like property, marine and liability insurance in retail space.

A number of foreign players in the sector have raised stakes in Indian JVs. These include Japan’s Nippon in Reliance Life Insurance, AXA in Bharti AXA Life Insurance, Bupa in Max BUPA health insurance and Sun Life Financial Inc in Birla Sun Life.

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