The Hindu : Business : Religare to make foray into general insurance

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Wednesday, Apr 09, 2008
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Religare to make foray into general insurance

Special Correspondent

To acquire U.K.-based Hichens Harrison for Rs. 440 crore

— PHOTO: S. SUBRAMANIUM

SCOUTING FOR PARTNERS: Sunil Godhwani (left), Group CEO and Managing Director, Religare, with Adam Wilson, CEO, Hichens Harrison and Co, at a press conference in New Delhi on Tuesday.

NEW DELHI: Having got initial approval from regulator Insurance Regulatory and Development Authority (IRDA) for the life insurance venture, Religare Enterprises on Tuesday said it was also looking for a foray into the general insurance business as well.

“The board has already given ‘in-principle’ approval for it and we are looking for domestic and foreign partners for the venture,” Religare Enterprises Group Chief Financial Officer Anil Saxena told reporters here after the press conference called to announce the decision to go in for acquisition of U.K.-based Hichens Harrison.

The company’s life insurance subsidiary, Aegon Religare Life Insurance Company, has got initial approval — R1 licence — from the regulator earlier this month. It is expecting the life insurance venture to be operational by July and is planning make a start with a large footprint going well beyond the Tier-I cities across the country through 50-60 branches to be established initially.

The acquisition of Hichens Harrison will cost around Rs. 440 crore. It has offered to pay 285 pence a share of Hichens and the acquisition would be funded through a mix of debt and equity into the ratio of 2:1, said Religare Enterprises’ Group CEO Sunil Godhwani.

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