Mumbai, March 16 (IANS): In an attempt to unlock value, Reliance Capital Ltd. on Thursday said its general insurance subsidiary will hive off its retail health insurance business into a stand-alone wholly owned health insurance subsidiary.

In a statement issued here, Reliance Capital part of the Anil Ambani-led Reliance Group said the Board of Directors of its subsidiary Reliance General Insurance Company Ltd. has approved this proposal.

According to Reliance Capital, the hive off proposal will enhance management focus on health insurance and provide flexibility to unlock value by bringing global leaders in this space as strategic and equity partners.

The hiving of the health insurance portfolio into a separate company-Reliance Health Insurance Ltd. is subject to the approval of Insurance Regulatory and Development Authority of India (IRDAI), the statement said.

According to the statement, the Reliance General Insurance has recorded gross written premium of Rs 570 crore under the health insurance portfolio as of March 31, 2016.

"Health insurance in India has been amongst the fastest growing insurance sectors and is expected to nearly double to nearly Rs 50,000 crore ($ 8 billion) by 2020," the statement said.

Reliance Capital has appointed Ravi Viswanath, with over 20 years global experience in health insurance, as proposed CEO of the new company.