Sundaram Finance currently holds 49.90 per cent in the above company and the said acquisition would increase its holding to 75.90 per cent.
After the completion of the transaction, Sundaram Finance and its associates would hold 100 per cent of the shareholding of RS, which was the first private sector non-life insurance company to be granted a licence, in 2000.
Also Read
The company reported a gross written premium (GWP) of Rs 1,437 crore in the fiscal 2014.
TT Srinivasaraghavan, managing director of Sundaram Finance Ltd was not immediately available for comment. However in a statement, he said Sundaram Finance and RSA in the last 15 years the partners have built up a successful brand in the insurance industry in India.
“RSA has added a lot of value on the technical aspects of the business and been a valued business partner. RSA Group had recently undertaken a review of their businesses globally and decided to exit non-core markets, of which India is one. While we are sorry to part company with them, we recognise that this is part of their larger global portfolio strategy,” he said.
Srinivasaraghavan further added, “India is entering an exciting phase in its economic journey and the financial services sector, specifically the insurance sector, is poised for significant growth. Given the strong synergy with the parent’s auto lending and housing finance businesses, this will further strengthen our presence in the retail financial services space.”
Royal Sundaram is the first private non-life insurance company licenced to operate in India. Royal Sundaram and it offers a range of innovative general Insurance products, including motor, health, personal accident, home and travel insurance for individual customers.
For commercial clients, Royal Sundaram offers a wide range of specialised insurance covers in fire, marine, engineering, liability and business interruption risks. Royal Sundaram also offers specially-designed products to small and medium enterprises and rural customers.
Royal Sundaram currently has over 6.7 million customers, 1,700 employees, and its products are distributed in over 180 cities across India, through agents, distribution partners, affinity partners and brokers.