Prudential, the UK-based financial services giant, announced on Thursday its plans to establish a standalone health insurance company in India. This venture will be undertaken in collaboration with Vama Sundari Investments (Delhi), a company owned by the HCL Group promoter.
According to a company statement, Prudential Group Holdings, a UK subsidiary of Prudential plc, will hold a 70% stake in the joint venture. Vama Sundari Investments will hold the remaining 30%, subject to regulatory approvals.
Anil Wadhwani, chief executive officer of Prudential plc, highlighted India as a strategically important market for the company. “Today, we have a significant presence in India with life insurance and asset management businesses, offering a comprehensive suite of insurance and wealth products,” Wadhwani stated.
The health insurance joint venture will be led by Amar Joshi, who has been designated as CEO. Joshi brings a wealth of experience to the role, having previously held positions at ICICI Prudential Life Insurance, Birla Sun Life Insurance, and SBI General Insurance.
Under current foreign direct investment (FDI) regulations, foreign insurers are permitted to hold up to a 74% stake in Indian health insurance companies. The Indian government is currently considering a move to allow 100% FDI in the insurance sector.
Prudential plc already has an established joint venture with ICICI Bank, operating through ICICI Prudential Life Insurance Company. This existing partnership has proven successful, with ICICI Prudential Life Insurance Company ranking as India’s third-largest private life insurer by premium, trailing only SBI Life Insurance and HDFC Life Insurance.
The Indian insurance market presents considerable growth potential, particularly in the health, savings, protection, and retirement sectors, making it an attractive environment for Prudential’s expansion.
The health insurance industry in India has seen significant growth. In the first 10 months of FY25, the industry reported a 10.44% year-on-year rise in gross direct premium income, reaching Rs 1 lakh crore. Standalone health insurers contributed approximately one-third of the total premium income.
India currently has seven standalone health insurance companies operating in the market: Star Health & Allied Insurance, Niva Bupa Health Insurance, Care Health Insurance, Aditya Birla Health Insurance, ManipalCigna Health Insurance, Narayana Health Insurance, and Galaxy Health Insurance.
