Prudential partners HCL's Vama Sundari for standalone health insurer

UK-based Prudential Plc on Thursday said it has partnered with HCL Group’s promoter company, Vama Sundari Investments (Delhi), to launch a new standalone health insurance company in India.

 

The venture will be a joint partnership, with Prudential Group Holdings, a UK subsidiary of Prudential Plc, holding a 70 per cent stake, while Vama Sundari Investments will own the remaining 30 per cent.

 

This marks Prudential’s second foray into insurance business and comes close on the heels of the Indian government allowing 100 per cent foreign direct investment (FDI) in the sector.

 

Currently, Prudential has been in a joint venture with ICICI Bank since 2001 in ICICI Prudential Life Insurance, where the private sector lender owns 51.04 per cent while Prudential owns 21.97 per cent. Prudential also owns 49 per cent stake in ICICI Prudential Asset Management Company through its asset management business Eastspring Investments.

 

Anil Wadhwani, CEO, Prudential plc, said, “India is a key strategic market for Prudential and we have a deep connection with the country having opened our first branch in Kolkata in 1923. India’s growing economy, population and middle class create significant opportunities for growth in its insurance market, especially in the health, savings, protection, and retirement sectors.”

 

Prudential Plc (UK) provides life and health insurance and asset management in 24 markets across Asia and Africa.

 

“Through this collaboration, we aim to advance our common mission to enhance access to quality health insurance and drive greater penetration across the country. It reflects our commitment to improving the well-being of millions of Indians and contributing to a stronger, more inclusive healthcare ecosystem,” said Shikhar Malhotra, Executive Director, Vama Sundari Investments (Delhi).

 

Presently, India has seven standalone health insurance companies, including Star Health & Allied Insurance, Niva Bupa Health Insurance, Care Health Insurance, Aditya Birla Health Insurance, ManipalCigna Health Insurance, and Narayana Health Insurance and Galaxy Health Insurance.

 

According to latest data, in the financial year 2025 (FY25) so far, standalone health insurers premium stood at ~32,802.22 crore, accounting for 30.4 per cent of the overall health insurance business.

 

Since the Covid-19 pandemic, the health insurance segment has topped motor insurance to become the largest business for non-life insurers. And, standalone health insurers do the bulk of retail health insurance in the country.

 

Due to the opportunities in the health segment, the largest insurer country, Life Insurance Corporation of India (LIC), is also planning to enter the health business by acquiring a stake in a standalone health insurance company.