The UK-based Prudential on Thursday announced the establishment of a standalone health insurance company in partnership with Vama Sundari Investments (Delhi), a firm owned by the HCL Group promoter.
Subject to regulatory approvals, Prudential Group Holdings — a UK subsidiary of Prudential plc — will hold 70% stake in the joint venture and Vama Sundari Investments the remaining 30%, according to a company statement.
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Anil Wadhwani, chief executive officer of Prudential plc, said India is a key strategic market for the company. “Today, we have a significant presence in India with life insurance and asset management businesses, offering a comprehensive suite of insurance and wealth products,” he said.
The health insurance joint venture will be led by Amar Joshi, CEO-designate. Joshi has previously worked with ICICI Prudential Life Insurance, Birla Sun Life Insurance, and SBI General Insurance.
Under current foreign direct investment (FDI) rules, foreign insurers can hold up to 74% stake in Indian health insurance companies. The government is currently in the process of allowing 100% FDI in the insurance sector.
Prudential plc already has a long-standing joint venture with ICICI Bank, operating through ICICI Prudential Life Insurance Company. This JV is India’s third-largest private life insurer by premium, behind SBI Life Insurance and HDFC Life Insurance.
The insurance market in India offers growth opportunities for its players, especially in health, savings, protection and retirement sectors.
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The health insurance industry reported a 10.44% year-on-year rise in gross direct premium income to Rs 1 lakh crore in the first 10 months of FY25, with standalone health insurers contributing around a third of the total.
Currently, India has seven standalone health insurance companies — Star Health & Allied Insurance, Niva Bupa Health Insurance, Care Health Insurance, Aditya Birla Health Insurance, ManipalCigna Health Insurance, Narayana Health Insurance, and Galaxy Health Insurance.
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