Chennai, March 13 (IANS): India's first stand-alone health insurer, Star Health and Allied Insurance Company Ltd, hopes to raise Rs.400 crore from new and existing investors, a top company official said Friday.
"We are looking at raising around Rs.400 crore capital from new investors. The new investor will infuse the funds into the company and not buy out the holding of existing shareholders," V. Jagannathan, chairman and managing director of Star Health and Allied Insurance Company Ltd, told IANS here on Friday.
He said Ernst and Young are doing the due diligence at the company's request.
The company is promoted by Oman Insurance Company, UAE, ICICI Ventures, Sequoia Capital, Tata Capital and some leading Non-Resident Indians (NRI) and Indian business houses.
According to Jagannathan, the company is hoping to close this year with a total premium of around Rs.1,450 crore up from around Rs.1,050 earned last year.
"The target for next year will be around Rs.1,900 crore. More than 90 percent of our business is from retail side," Jagannathan said.
Welcoming the passage of the insurance bill in the parliament on Thursday, he said the move would pave the way for newer products, increased penetration of health insurance cover.
Queried about the same statements which were heard during the run up to the opening up of the insurance sector to private players in 1990s, Jagannathan said: "Many new products have come into the market after opening up. We have a policy for persons suffering from AIDS. We also cover senior citizens which were not there prior to the private player's entry."
On the increased penetration of insurance following the hike in foreign direct investment (FDI) to 49 percent from 26 percent, Jagannathan said there will be more stand alone health insurance companies now.
"All these days we have been fishing in the same pond. Now with the entry of new players, companies will have to scout for new pond. Insurers will move out to rural and other areas which in turn would increase the insurance penetration," Jagannathan said.