Wednesday, March 12, 2014

Birla Group to foray into health insurance market, seeks partners

Considering Indian health insurance sector a good potential market to grow, the Kumarmangalam Birla-led AV Birla Group is planning to enter the market. It has appointed Boston Consulting Group to find a partner to enter in the sector, according to ET.

The Mumbai-headquartered AV Birla Group is already present in the Indian life insurance market through Birla Sun Life Insurance Company Limited (BSLI), a joint venture with Canada-based international financial services company Sun Life Financial Inc.

According to the report, the group is in talks with a South African health insurance company. Some large international health insurance players such as South Africa -based Discovery and US-based Aetna have been scouting for a local partner to enter India's health insurance market.

The Rs 12,606 crore India health insurance sector which accounts for about a quarter of the total non-life insurance business in the country, is expected to grow by 25% in the next five years.

Since the group is searching for a foreign partner, it is expected that the Indian conglomerate will hold the 74 percent stake in the joint venture.

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