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| Religare and Swiss Re join hands to enter India's health insurance space |
| Announcement / Corporate Jun 01, 2009, 20:28 IST |
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Religare Enterprises Limited (“Religare”) and Swiss Reinsurance Company (“Swiss Re”) have signed a non-binding agreement to develop a joint venture health insurance company in India. The proposed joint venture will further strengthen Religare’s diversified portfolio and bolster its presence in the insurance domain. Swiss Re will be a minority shareholder and will seek to provide its actuarial, risk management and underwriting expertise to the new venture.
Religare expects to be one of the leading players in India’s health insurance domain thanks to its ability to offer a large diversified distribution base through its financial services businesses. In addition, other business in the group operating through companies such as Fortis Healthcare Limited, Super Religare Laboratories Limited and Religare Wellness Limited possess expertise in the India health market.
For Swiss Re, one of the world’s leading and diversified reinsurers, this investment represents a further commitment to the development of health insurance business in emerging markets, with India as a core area of focus.
The proposed joint venture will seek to commit sufficient investment to achieve a successful launch of the business, which Religare and Swiss Re anticipate will be operational by 2010.
On this announcement, Mr. Sunil Godhwani, CEO & MD, Religare said, “Religare is very pleased with this proposed joint venture and it is a clear recognition of our vast distribution capabilities in India and our domain expertise in the healthcare sector through our other group businesses.”
Mr. Christian Mumenthaler, Swiss Re Executive Board member and Head of Life & Health Underwriting said, “Swiss Re’s interest in a health insurance joint venture is also a natural extension of leveraging our actuarial and underwriting expertise in the important Indian market.”
India’s health insurance market
In FY 2007-08, India's health insurance industry collected premiums totaling more than INR 5,100 crores (CHF 1.2 billion), despite only a small percentage of the Indian population (around 2 percent) having private health insurance cover. Due to India’s changing healthcare market, including such factors as the introduction of specialised health insurance companies and third-party administration companies, as well as socio-economic trends and regulatory changes, health insurance has seen a compound annual growth rate (CAGR) of around 40 percent in the six years to FY2007-08. It is one of India’s fastest-growing non-life insurance segments.
The outlook for the Indian health insurance industry remains positive, with the overall health insurance industry in India expected to grow at a CAGR of at least 25 percent by FY 2015, to reach a market size of approximately INR 28,000 crores (CHF6.5bn)[1].
About Swiss Reinsurance Company Ltd
Swiss Re is a leading and highly diversified global reinsurer. The company operates through offices in more than 20 countries. Founded in Zurich, Switzerland, in 1863, Swiss Re offers financial services products that enable risk-taking essential to enterprise and progress. The company’s traditional reinsurance products and related services for property and casualty, as well as the life and health business are complemented by insurance-based corporate finance solutions and supplementary services for comprehensive risk management. Swiss Re is rated “A+“ by Standard & Poor’s, “A1” by Moody’s and “A” by A.M. Best.
Swiss Re has been associated with Asia since 1913 and now has more than 1,000 staff in Asia Pacific. The company's Asian headquarters are in Hong Kong. In 2006, Swiss Re celebrated 50 years since opening its first offices in Asia Pacific.
The company has been present in India since 1998. It established Swiss Re Shared Services Pvt Ltd in Bangalore in 2000, and opened a Service Company in Mumbai in 2002 to provide service to Swiss Re Zurich in its reinsurance activities.
For more information on Swiss Re, please visit: www.swissre.com
About Religare
Religare (NSE Code-RELIGARE, BSE Code-532915, Bloomberg Code-RELG IN) is a diversified financial services group of India offering a multitude of investment options. The diverse bouquet of financial services which Religare offers can be broadly clubbed across three key verticals - Retail, Institutional and Wealth spectrums. The services extend from asset management, Life Insurance, wealth management to equity broking, commodity broking, investment banking, lending services, private equity and venture capital. Religare has also ventured into the alternative investments sphere through its holistic arts initiative and Film fund. With a view to expand, diversify and introduce offerings benchmarked against global best practices, Religare operates in the life insurance space under ‘Aegon Religare Life Insurance Company Limited’ and wealth management under the brand name ‘Religare Macquarie Private Wealth’.
Religare has a pan India presence, 1837 locations across 498 cities and towns. It also currently operates from nine international locations following its acquisition of London's brokerage & investment firm, Hichens, Harrison & Co. plc (now Religare Hichens, Harrison Plc).
The vision is to build Religare as a globally trusted brand in the financial services domain and present it as the 'Investment Gateway of India'. All employees of the group guided by an experienced and professional management team are committed to providing financial care, backed by the core values of diligence, innovation, ambition and passion.
For more information, please visit - www.religare.in
“Religare Enterprises Limited proposes, subject to receipt of requisite approvals, market conditions and other considerations, to make a rights issue of its equity shares to its existing shareholders and has filed a draft letter of offer (“DLOF”) with the Securities and Exchange Board of India (“SEBI”). The DLOF is available on the website of SEBI at www.sebi.gov.in as well as on the websites of the lead manager at www.enam.com. Investment in equity shares involves a high degree of risk and for details relating to the same, please refer to the section titled “Risk Factors” of the DLOF.”
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