Religare enters health insurance business

Religare aims to break even in three-five years

July 11, 2012 2:28 IST | India Infoline News Service
Religare Enterprises—a diversified financial services group—is all set to enter in the health insurance business, according to media reports.

The company has decided to launch its first health insurance product soon but the entire operations will start in the last quarter of this calendar year, the reports added.

Headquartered in New Delhi, the company aims to sell around 2 lakh policies in the first year. It is starting this business with around 100 locations, where it will use the existing branches of Religare without creating standalone branches for health insurance. This business is already capitalised with Rs. 1.75 billion.

The company said that it will launch its new product soon but will not go in for any advertisement campaign for the first 12 months. It has a reasonable customer base, which it can approach without any brand promotion.

Religare has decided not to leverage its hospital chain Fortis for this venture. However, it will take help from the doctors and specialists in Fortis Hospitals to design its products. Religare has tied-up with Union Bank and Corporation Bank. Both the banks have agreed to take 5% equity each in the company which will give access to the 40 million customer base of these two banks. The company aims to break even in three-five years.

Religare offers broking, insurance, asset management, SME lending, wealth management, institutional equities and investment banking services to its clients.
In India, Religare serves over a million clients through over 2,200 offices spread across approximately 550 cities. Religare also has a presence in Hong Kong, Singapore, the US, the UK, Japan, the Middle East and Sri Lanka.

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