Reliance Capital To List General Insurance Arm By FY18
Reliance Capital will dilute a minimum of 10% stake in its general insurance arm by FY18.
Reliance Capital Ltd. will list its wholly owned subsidiary Reliance General Insurance Company Ltd. on the the stock exchanges by the financial year 2017-18 amidst expectations of growth in India's insurance sector.
The board of directors on Monday approved a plan to dilute a minimum of 10 percent stake by FY18, and up to 25 percent over the next three years, Reliance General Insurance Chief Executive Officer Rakesh Jain told reports in Mumbai.
The move is in line with the Anil Ambani-led group's ambition to make Reliance Capital a core investment company. Only last week it received approval to list its asset management company which manages the Reliance Mutual Fund. Earlier this year, Reliance Capital hived off its health insurance business and sold its stake in radio and television business to the Zee Group.
Reliance General Insurance's reported gross written premiums grew at 40 percent in FY17, outperforming the industry that grew 30 percent during the same period, according to its media statement.
The coming years are likely to witness a double digit growth in the sector largely due to disproportionately low penetration of insurance.Rakesh Jain, Executive Director and CEO, Reliance General Insurance
The company reported a 32 percent growth in profit to Rs 130 crore for the year-ended March, while its total investment book stood at Rs 6,724 crore.
Reliance General Insurance provides insurance on homes, travel, crops, automobiles, health and fire. It has partnerships with IndusInd Bank, Catholic Syrian Bank, Andhra Bank and Bank of India for a distribution network across the country.
Shares of Reliance Capital Ltd. closed 0.3 percent up while the country’s benchmark BSE Sensex declined 0.5 percent on Monday.
