Prudential, a UK-based insurance company, has announced the establishment of a standalone health insurance company in partnership with Vama Sundari Investments, a company owned by the HCL Group. The joint venture, subject to regulatory approvals, will see Prudential Group Holdings hold a 70% stake and Vama Sundari Investments hold the remaining 30%. This development marks Prudential’s further expansion into the Indian insurance market, which is currently experiencing growth opportunities in health, savings, protection, and retirement sectors.
India’s health insurance industry has reported a 10.44% year-on-year rise in gross direct premium income to Rs 1 lakh crore in the first 10 months of FY25. Standalone health insurers account for around a third of total premium income. Prudential already has a presence in India through its joint venture with ICICI Bank, operating as ICICI Prudential Life Insurance Company, which is one of the country’s largest private life insurers.
Anil Wadhwani, CEO of Prudential plc, has stated that India is a key strategic market for the company, citing its existing presence in the country through life insurance and asset management businesses. Amar Joshi, CEO-designate of the new health insurance joint venture, has a wealth of experience in the Indian insurance industry, having previously worked with ICICI Prudential Life Insurance, Birla Sun Life Insurance, and SBI General Insurance.
The development is also significant in light of the current foreign direct investment (FDI) rules in the Indian insurance sector. Under current regulations, foreign insurers can hold up to 74% stake in Indian health insurance companies. The government is currently reviewing the rules to allow 100% FDI in the sector, which could further open up opportunities for foreign investors like Prudential.