After Birla, another company has filed an application to float a health insurance company. Rajesh Relan, former MD of PNB MetLife, has filed an application with the regulator to start a health insurance company along with private equity firm Arth Capital. The company, to be called Aspire Health Insurance, will sell products through multi-channel distribution with focus on online.
The company will have an initial capital of ` . 100 crore. The promo . 250 crore ters will put in a total of ` in the company. Relan will hold 26% of the company. Sumit Chandwan’s firm Arth Capital will hold 40%. Relan and Arth Capital will jointly hold 66% in a SPV and will be the largest shareholders and hence the promoters. The balance 34% will be held by a Hong Kong-based Mcquarie investment fund. Thefuture capital has been tied up and the company is expected to break even in the fourth year. Relan was responsible for PNB MetLife JV .
Relan refused to provide details of the deal or on the investors due to confidentiality reasons. Relan confirmed filing of the application with the regulator. “We are committed to build a formidable health-tech insurance company that will disrupt the current market through technology and will emerge as a leader in the standalone health insurance space,“ Relan said. Health insurance has been growing over 20% over the past several years supported by rising medical costs.
Source: The Economic Times
Date: 24th Feb, 2017