Re-insurance firm Swiss Re today said it will sell its entire 26 per cent stake in third party administration firm TTK Healthcare TPA to Vidal Healthcare Services so that it can focus on the re-insurance business in India.
However, the company has not disclosed the size of the deal.
In a statement, Swiss Re said, "It has signed an agreement with Vidal Healthcare Services Private Ltd (Vidal), whereby Swiss Re will sell its 26 per cent shareholding in TTK Healthcare TPA Private Ltd (TTKHTPA) to Vidal."
The transaction is subject to regulatory approval, it added.
Bangalore-based TTKHTPA, which was formerly known as TTK Healthcare Services Pvt Ltd, provides third party administration (TPA) services relating to Indian medical and health insurance policies.
"It is our global strategy to focus on our core competence, (re)insurance business. This transaction allows Swiss Re to fully concentrate its resources on capturing rapidly growing opportunities in the (re)insurance space in India and providing tailor-made solutions in supporting our client needs," Swiss Re Group Management Board Member and Asian Division Head Martyn Parker said.
Vidal was founded and majority-owned by Girish Rao. As the co-founder and Managing Director of TTKHTPA from 2002 to 2007, Girish Rao was instrumental in building TTKHTPA into one of India's leading TPA firms.
Commenting on the agreement, Rao said, "Through this investment, I look forward to capitalising on opportunities arising from many key needs of the growing healthcare sector."
Earlier, it was believed that Anil Ambani Group-promoted Reliance Life was in discussions to bring in Swiss Re as a foreign partner in the company.
Global re-insurer Swiss Re has been present in India since 1998. It established Swiss Re Shared Services (India) Private Ltd in Bangalore in 2000 and opened a service company in Mumbai in 2002 to provide support for Swiss Re Zurich's reinsurance activities.