Reliance Capital to carve out health biz from general insurance, plans to bring in global equity partners
KOLKATA: Reliance Capital has announced plans to carve out retail health insurance business from its subsidiary Reliance General Insurance Company to increase its stake in India's growing health insurance sector.
The company also has plans to bring in global equity partners to unlock value in the company in the future.
The board of the general insurance company has approved the proposal to form Reliance Health Insurance Ltd, which will, for the time being, be a wholly owned subsidiary of Reliance Capital, the Anil-Ambani led Reliance Group company.
The plan, however, requires approvals from Insurance Regulatory & Development Authority of India.
"The proposal will enhance management focus on health insurance and provide flexibility to the company to unlock value by bringing in global leaders in this space as strategic and equity partners," the company said in a press statement.
Health insurance in India has been amongst the fastest growing insurance verticals and annual premium is expected to nearly double to nearly Rs 50,000 crore by 2020.
Reliance's general insurance business had gross written premium of Rs 570 crore as of March 31, 2016 through its network of over 175 branches across the country.
Reliance Capital has hired Ravi Viswanath as the CEO-designate of the proposed company.
The company also has plans to bring in global equity partners to unlock value in the company in the future.
The board of the general insurance company has approved the proposal to form Reliance Health Insurance Ltd, which will, for the time being, be a wholly owned subsidiary of Reliance Capital, the Anil-Ambani led Reliance Group company.
The plan, however, requires approvals from Insurance Regulatory & Development Authority of India.
"The proposal will enhance management focus on health insurance and provide flexibility to the company to unlock value by bringing in global leaders in this space as strategic and equity partners," the company said in a press statement.
Health insurance in India has been amongst the fastest growing insurance verticals and annual premium is expected to nearly double to nearly Rs 50,000 crore by 2020.
Reliance's general insurance business had gross written premium of Rs 570 crore as of March 31, 2016 through its network of over 175 branches across the country.
Reliance Capital has hired Ravi Viswanath as the CEO-designate of the proposed company.
