Swiss Re is selling its 26% stake in TTK Healthcare TPA Private Ltd., a third-party administration service for domestic medical and health insurance polices, to Vidal Healthcare Services.
“It is our global strategy to focus on our core (re)insurance business. This transaction allows Swiss Re to fully concentrate its resources on capturing rapidly growing opportunities in the (re)insurance space in India,” said Martyn Parker, Swiss Re group management board member and Asian division head, in a statement.
The third-party administration system has a crucial role to play in the expanding health care industry in India, noted Parker.
This move is only about Swiss Re's exit of the Bangalore-based TTKHTPA, but not about any exit of the Indian medical and health (re)insurance market, said KC Wong, a Hong Kong-based spokesman for Swiss Re.
Wong also said the move is not a signal that Swiss Re was dissatisfied with the business performance of TTKHTPA.
Swiss Re declined to disclose the terms of the transaction, which is subject to regulatory approval.
Vidal is founded and majority-owned by Girish Rao, who was the co-founder and managing director or TTKHTPA from 2002 to 2007. Rao had planned to develop TTKHTPA into one of the leading third-party administration services for public and private sector insurance companies in India, according to Swiss Re.
TTKHTPA, formerly known as TTK Healthcare Services, was established in April 2002 and licensed by the Insurance Regulatory and Development Authority of India, noted the reinsurer.
Swiss Re has been in India since 1998. It set up Swiss Re Shared Services (India) Private Ltd. in Bangalore in 2000 and opened a services company providing services to Swiss Re Zurich in its reinsurance activities in Mumbai in 2002. The reinsurer's Asian headquarters is in Hong Kong.
Source:Insurance News