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UK-based insurance giant Prudential plc has announced its plan to establish a joint venture with Vama Sundari Investments (Delhi) Private Ltd, an HCL Group’s promoter company founded by Shiv Nadar, to operate a standalone health insurance business in India.
Subject to obtaining regulatory approvals, Prudential Group Holdings, a UK subsidiary of Prudential plc, will hold a 70% stake in the joint venture, while Vama will hold the remaining 30% stake. Prudential plc is a member of the UK FTSE100 Index. Prudential’s announcement comes three days after the exit of German insurance giant Allianz from joint ventures with the Bajaj group.
In India, Prudential’s business primarily consists of a 21.97 per cent holding in the Indian Stock Exchange listed life insurance business, ICICI Prudential Life, and 49 per cent of the asset manager, ICICI Prudential Asset Management Company Limited, through its asset management business Eastspring Investments.
Anil Wadhwani, CEO, Prudential plc, said: “India is a key strategic market for Prudential and we have a deep connection with the country having opened our first branch in Kolkata in 1923. Today, we have a significant presence with life insurance and asset management businesses providing a comprehensive offering of insurance and wealth products. Prudential plc (UK) provides life and health insurance and asset management in 24 markets across Asia and Africa.
Apart from 27 non-life insurance companies, seven standalone health insurance firms are already operating in India.
“India’s growing economy, population and middle class create significant opportunities for growth in its insurance market, especially in the health, savings, protection, and retirement sectors,” he said. “Transforming access to healthcare and increasing insurance penetration are strategic priorities for Prudential and through our comprehensive health solutions we aim to offer help to millions of Indian consumers when they need it most,” Wadhwani said.
“Through this collaboration, we aim to advance our common mission to enhance access to quality health insurance and drive greater penetration across the country. It reflects our commitment to improving the well-being of millions of Indians and contributing to a stronger, more inclusive healthcare ecosystem,” said Shikhar Malhotra, Executive Director, Vama Sundari Investments.
The joint venture health insurance company will be led by industry veteran Amar Joshi (CEO designate), subject to regulatory approval.
“The joint venture aims to address the growing healthcare needs of the Indian consumer and contribute to the Indian Government’s vision – ‘Insurance for All by 2047’,” Prudential said, adding that Prudential has over 100 years of history in Asia.
HCL Group, founded in 1976 as one of India’s pioneering IT garage start-ups, has been at the forefront of modern computing, achieving several industry firsts, including the introduction of the 8-bit microprocessor-based computer in 1978, ahead of its global peers. Over the decades, the group has expanded its presence across diverse sectors, including technology, healthcare, and talent management solutions and comprises various companies including HCL Tech and HCL Healthcare.
The HCL group generates annual revenues of over US$ 13.8 billion with 220,000 employees operating across 60 countries. HCL Healthcare is one of India’s largest corporate health solutions firms and delivers full circle wellness through a tech-driven ‘phygital’ model of care.
