TVS may hop on new biz of Star Health founder

In fact, Galaxy Health and Allied Health Insurance Company is registered at RoC-Chennai, with an authorised share capital of Rs5.25 crore and paid-up capital is Rs5.25 cr. The company has 5 directors/key management persons namely Sai Satish, Sudarshan Venu, Robin Ma Jacob

Making Inroads

• V Jagannathan exited Star Health
• Its former CEO Dr Prakash also joining him
• Health insurance, fastest in insurance industry, growing at 30%

Mumbai: Star Health and Allied Insurance founder V Jagannathan is in talks with the TVS Group for equity participation by the Chennai-based conglomerate in the veteran’s new health insurance venture. After exiting Star Health, Jagannathan (79) has decided to start another health insurance company.

Former Star Health CEO Dr S Prakash has joined Jagannathan in the new venture. Jagannathan had set up Star Health and Allied Insurance after retiring as Chairman of United India Insurance. Incidentally, the TVS group had formerly owned an insurance company, Madras Motor and General Insurance, before the nationalisation of the industry. Post-nationalisation, Madras Motor merged into United India Insurance. Subsequently, following liberalisation, Sundaram Finance-which was initially promoted by Madras Motor -floated Royal Sundaram Insurance, a general insurance company.

In fact, Galaxy Health and Allied Health Insurance Company has already incorporated itself with MCA as a public company on December 6. It has been listed in the class of public company and classified as non-govt company, sources familiar with the development told Bizz Buzz.

The company is registered at Registrar of Companies, Chennai, with an authorised share capital of Rs5.25 crore and paid-up capital is Rs5.25 crore. The company has got five directors/key management persons namely Sai Satish, Sudarshan Venu, Robin Ma Jacob. As per MCA records, Galaxy Health and Allied Health Insurance Company is involved in activities such as insurance, reinsurance, and pension funding except compulsory social security, the source added.

Health insurance has been the fastest-growing segment in the insurance industry with a growth rate of over 30 per cent. Following this high growth rate, the share of health insurance has overtaken motor which was hitherto the largest.

Total health insurance premiums are expected to cross Rs1 lakh crore during the current financial year. Last year, the total premium from health insurance was Rs90,667 crore. During the current financial year, the premium from health insurance has crossed Rs70,479 crore up to November. Of this, Rs19,118 crore has come from five standalone health companies, with Star Health being the largest - with Rs8,825 crore between April to November 2023. The other standalone companies are: Care Health, Aditya Birla Health, Niva Bupa and Manipal Cigna. Given the high growth in the segment, other players are also looking at setting up standalone health insurance companies.