Reliance Capital, a part of the Anil-Ambani led Reliance Group, on Thursday announced plans to separate out its retail health insurance business, from its general insurance business, into a separate, wholly owned subsidiary, which is likely to enhance independent management focus and value unlocking, the financial services provider said in a release to BSE.
As per Reliance Capital, health insurance is among the fastest growing segments in the insurance business in India. It expects the size of health insurance business to double to Rs 50,000 crore by 2020.
Reliance Health Insurance Ltd., the proposed new company for health insurance business, will be a wholly owned subsidiary of Reliance Capital, the company said. However, the proposal is subject to regulatory approvals.
Further, Reliance Capital has appointed Ravi Viswanath as proposed CEO of Reliance Health Insurance Ltd. Mr Viswanath has over 20 years of experience in health insurance sector.
The health insurance business of Reliance General Insurance had recorded gross written premium of Rs 570 crore as of March 31, 2016. Reliance General Insurance has a network of over 175 branches across India.
As of 1.56 pm, Reliance Capital shares traded 0.36 per cent higher at Rs 606.25 apiece compared to 0.14 per cent gain in the broader Nifty.