Apollo DKV Health may raise capital base to Rs 500 cr

Apollo DKV Health Insurance is planning to increase its capital base to Rs 400-500 crore by 2012-13, from the current Rs 220 crore.

The health insurer, promoted by Chennai-based the Apollo Hospitals Group and Deutsche Krankenversicherung (DKV) AG, also said the company was expected to break-even in 2012-13.

Speaking to Business Standard after launching company’s new health insurance policy — MAXIMA — in Chennai, Antony Jacob, chief executive officer, Apollo DKV Health Insurance, said that the company had set a target of Rs 700 crore in premium income by 2012-13.

Till October, the company had earned a premium of Rs 60 crore and was likely to close the current fiscal with a premium income of Rs 100 crore as compared to Rs 49 crore last year, he added.

The company was planning to increase the number of branches to 55 from the current 24, and the number of agents to 40,000 from the current 8,000, he said.

He added the company was awaiting for an approval from the Insurance Regulatory and Development Authority (Irda) to allow banks to sell health insurance products.

Currently, the company has a co-insurance tie-up with HDFC ERGO General Insurance Company, promoted by HDFC Bank, through which Apollo DKV will design a product and HDFC ERGO will sell it through its agents and the bank.

“We are also talking to three insurers, both life and general, for similar tie-ups.”

The company had entered into a deal with HDFC ERGO in August, and earned Rs 2.5 crore so far, added Jacob.

The insurer is also planning to use Apollo Hospitals’ pharmacy network to reach out to uninsured.

The hospital chain has a 74 per cent stake in Apollo DKV.