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    Religare-Swiss Re JV plans go bust

    Synopsis

    The proposed health insurance joint venture (JV) between Delhi-based financial services group Religare Enterprises and the world’s second-largest reinsurer Swiss Re has fallen through.

    MUMBAI | NEW DELHI: The proposed health insurance joint venture (JV) between Delhi-based financial services group Religare Enterprises and the world���s second-largest reinsurer Swiss Re has fallen through. This is the second such proposed JV that has come unstuck for Religare, who had earlier parted ways with Dutch financial company Aegon in the mutual fund business. Incidentally, Swiss Re had agreed to buy a 26% stake in the health company at a significant premium, which would meet a large part of the company���s capital requirements. (Watch)

    Swiss Re is already present in the Indian market through a 26% stake in TTK Healthcare Services, a health insurance third-party administrator. Although spokespersons of both Religare and Swiss Re declined to give reasons as to why the venture did not fructify, an executive familiar with the latest development said, the Swiss reinsurance firm pulled out of the talks, as the deal with Religare could pose to be clash of interest with the other entity.

    When contacted, Eileen Lim, director, corporate communications Asia, said that Swiss Re continued to explore a health insurance JV. The company was also awaiting the passage of the insurance bill, which will enable foreign insurance companies to hold 49% in Indian counterparts as against the current 26% stake.

    The two companies had signed a non-binding term sheet to develop a health insurance JV in India on June 1, 2009. But they have mutually decided not to renew their agreement, which expired on August 20. Both companies have now decided to charter their growth plans in their respective areas, in alignment with their independent strategies and goals. The Religare spokesperson added: ���The company on its part, wishes to go ahead aggressively in the health insurance sector.���


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