Swiss Re to invest Rs 920 crore in Paytm’s insurance unit
reported about Swiss Re’s investment in Paytm’s insurance unit in its October 5 edition.
“It is an important milestone in our financial services journey of taking general insurance products to the masses. We look forward to gaining from Swiss Re’s global insurance capabilities and building innovative products to tap into the Indian market,” said Vijay Shekhar Sharma, chairman, MD & CEO, One 97 Communications—the parent firm of Paytm.
Last July, Paytm, along with Sharma, announced it was
acquiring Raheja QBE, a Mumbai-based general insurance company, from QBE Australia and its 51% domestic partner Prism Johnson of the S Raheja Group for Rs 568 crore.
The company is still awaiting regulatory approval. At the time of the announcement, the acquisition was routed through QorQl Pvt. Ltd (later renamed as Paytm Insuretech Pvt. Ltd), where Sharma holds a 51% stake, with Paytm parent One97 Communications owning the rest. Sharma owns close to 15% in One97 Communications.
ET reported on Wednesday that Paytm has finalised its plans to
increase its IPO size to around Rs 18,300 crore with a Rs 10,000 crore offer for sale, or OFS, component while the primary share sale would be Rs 8,300 crore.
ET on July 29 had also reported that Sharma was looking at a
JV alliance for the general insurance business and that the insurance regulator was in favour of a more diversified ownership structure for a general insurance entity. Raheja QBE, which primarily focuses on corporate covers such as project liabilities, had entered the retail insurance space with auto and health products in February.
Paytm already has an insurance broking licence through a wholly-owned subsidiary, Paytm Insurance Broking. According to local rules, foreign companies can own 100% of broking business.
Indian law limits foreign direct investment in insurance at 74%. Even though Paytm is incorporated in India, it is treated as a foreign company by financial regulators as a majority of its investors are foreign.