After raising Rs 285 crore from private equity and venture capital firms, Star Health Allied Insurance, the country’s first standalone insurer, plans to enhance its capital by another Rs 120 crore to achieve its premium collection target of Rs 2,000 crore. The company also hopes to make an underwriting profit this year.
Chairman and Managing Director V Jagannathan said the company clocked a premium of Rs 950 crore till December. By the end of the current financial year, it would be increased to Rs 1,250 crore.
“Our current capital will be enough to achieve Rs 1,500 crore, beyond which we need money.”
Executive Director S Sundaresan said the company planned to increase its business to Rs 2,000 crore by 2011-12, “for which we would require another Rs 120 crore”.
Jagannathan said the capital had increased to Rs 368 crore, including share premium and application. Following this injection of funds, the paid-up capital has shot up to Rs 202 crore.
It may be noted that ICICI Venture has agreed to infuse Rs 120 crore, of which Rs 100 crore have already been provided. ICICI Venture now holds 14 per cent in Star Health. Foreign holding stands at 20 per cent.
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Sequoia Capital, another venture capital firm, recently invested Rs 165 crore in Star Health Investments, a special purpose vehicle floated for Star Health and Allied Insurance Company. Comprising industrialists, the vehicle holds 62 per cent in the company.
Foreign investors include Oman Insurance, ETA Ascon Star Group Chairman Syed Mohamed Salahuddin and Essa Abdullah Al Ghurair from the prominent Al Ghurair family of the UAE. It may be noted that the family has been ranked as one of the world’s richest by Forbes magazine.
Jagannathan added he was confident the company would make an underwriting profit this year, as against a loss last year. He refused to disclose the target.
Speaking about the new policies, he said the Star unique health insurance policy provided hospitalisation benefits. It also covers pre-existing diseases after a waiting period of 11 months. It can be a boon for people perceived as hypertensive or diabetic. The cover would be for people in the 18-65-age category.
This policy is also available for HIV positive patients. There is a rider, though.
For couples, there’s the Star wedding gift insurance policy. It offers a basic health cover and pays child delivery expenses, but with an upper limit