Mumbai: Reliance General Insurance Ltd, the non-life insurance arm of Reliance Capital, on Monday announced that it plans to get listed on stock exchanges this fiscal year.
This is the second subsidiary of Reliance Capital heading for the stock markets. Last week, Reliance Nippon Life Asset Management Ltd, the country’s third largest mutual fund, announced its plan to sell 10% through an initial public offering (IPO).
During the fiscal year ended 31 March, the company’s gross written premium grew 41%, above the industry average of 30%, Reliance General said in a statement.
According to the Insurance Regulatory and Development Authority of India (Irda), the company’s gross direct premium underwritten during 2016-17 stood at Rs3,935.35 crore, up from Rs2,791.56 crore the previous year.
“The general insurance industry is slated to grow with the economy where affluence-led consumption will act as its primary growth driver. The coming years are likely to witness a double-digit growth in the sector largely due to disproportionately low penetration of insurance... The listing will enable retail investors to participate in this high-growth and new wealth creation opportunity,” said Rakesh Jain, executive director and chief executive, Reliance General in the statement.
In the non-life space, Reliance General is the first private sector firm to announce a plan for a public listing.
At the end of March, its profit before tax stood at Rs130 crore, up 32% from a year ago, while the investment book stood at Rs6,724 crore, 25% higher from a year ago.
The company distributes its products through banks such as IndusInd Bank, Catholic Syrian Bank, Andhra Bank and Bank of India.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.