Page 12 - Insurance Times December 2018

Belgium-based Ageas Star Health Insurance acquisition to get completed by

plans expansion in Indian next year
The transfer process of Star Health Insurance which is being acquired by
health insurance market
Safecrop Holdings is likely to be completed by next
Ageas is looking to expand its activi- year. Star Health is the country's first and largest
ties into non-life insurance seg- standalone health venture.
ments, especially the health insur-
ance segment, in India. "The sale process is underway. Lots of approvals are
still to come in. We are closely looking forward to
According to Bart De Smet, Chief Ex- clearance from Insurance Regulatory and Develop-
ecutive Officer, Ageas, company's in- ment Authority of India," said S Prakash, Chief Op-
vestment in Royal Sundaram is in erating Office, Star Health and Allied Insurance.
line with its strategic choice to ex-
Recently, the Competition Commission of India had also approved the acquisi-
pand in fast-growing markets in
tion of Star Health Insurance by SafeCorp Holdings. Safecrop Holdings Pvt Ltd
which it already operates, with a
is a consortium of WestBridge AIF, Rakesh Jhunjhunwala and Madison Capital.
preference for non-life activities.
The company, in August this year, signed a definitive agreement with the share-
"The investment in Royal Sundaram holders of Star Health, which include Star Health Investments and funds asso-
in the Indian market ticks all the ciated with ICICI Venture, Tata Capital and Apis Partners, to purchase their shares
boxes. We will support the company in the company.
in its diversification away from mo-
"The syndicate of investors was with us for over seven years, and so it was time
tor to other product lines, such as
for a change," he said, adding that he expects the health insurer to expand its
health," said Bart De Smet.
reach and operations as well as valuation with the sale.
On November 14, Ageas Insurance
International and Sundaram Finance "So far, in 2018-19, we are growing at about 22 per cent in fresh policy issu-
said that the former will acquire 40 ances, and our overall premium growth is 35 per cent," he said, adding that
the insurer is on track to meet its targets.
percent in Royal Sundaram General
Insurance for Rs 1,520 crore. Cur- Prakash said the health insurer is now working on digital enablement of ser-
rently, Sundaram Finance holds 75.9 vices. "We are working on bringing in robotic process automation, and are look-
percent in Royal Sundaram and has ing forward to cloud readiness for the organisation," he said, adding that this
proposed to divest 25.9 percent. would enhance the speed, efficiency and analytics of the insurer.
The Euronext-listed Ageas offers re-
tail and business customers life and HDFC Ergo in talks to buy Apollo Munich Health
non-life insurance products designed Insurance
to suit their specific needs. Ageas HDFC Ergo is in advanced talks to acquire Apollo Munich Health Insurance for
concentrates its business in Europe
an approximate valuation of Rs 2,600 crore, ac-
and Asia.
cording to sources.
Bart De Smet said that India is
Apollo Munich is the second-largest standalone
among the fastest growing econo-
health insurance provider in the country. Munich
mies globally. In 2018, India became Re will exit the company after the sale, said
the sixth largest economy in the sources. "Apollo will own a marginal stake in the
world, and is expected to become merged entity with HDFC Ergo,". Ergo, the German insurer that holds 49% stake
the third-largest by 2020.
in HDFC Ergo, is owned by Munich Re. Arpwood Capital is the exclusive advisor
"Currently there is under-penetra- to the proposed deal between HDFC Ergo and Apollo Munich.
tion of the Indian market. Premiums
are expected to double between
2017 and 2022. Therefore we are
convinced that there is a significant
potential to grow," Bart De Smet
said.

12 The Insurance Times, December 2018