Swiss Re to invest Rs 920 cr for 23% stake in Paytm’s insurance initiative
Financial services firm Paytm said today that its associate, Paytm Insuretech Private Limited (PIT), has entered into a strategic partnership with Swiss Re, one of the world’s leading providers of reinsurance, insurance and other forms of insurance-based risk transfer.
Swiss Re will invest (by way of equity shares and compulsorily convertible preference shares) about Rs 920 crore (Rs 397.3 crore upfront, and the remaining in tranches, subject to fulfilment of certain milestones) in PIT for an aggregate stake of 23 per cent on a fully diluted basis.
India’s insurance market presents a significant opportunity, given the market’s protection gap and under-penetration compared to the global average.
Gross written premium for non-life insurance is expected to increase from $27 billion as of FY2021 to $50-60 billion by FY 2026, as per RedSeer data.
Paytm Insuretech plans to leverage Paytm’s customer base and merchant ecosystem to develop innovative insurance products and solutions.
“We are excited to partner with Swiss Re for our insurance foray as a key strategic investor. It is an important milestone in our financial services journey of taking general insurance products to the masses. We look forward to gaining from Swiss Re’s global insurance capabilities and building innovative products to tap into the Indian market,” said Vijay Shekhar Sharma Chairman, MD & CEO of One 97 Communications, the parent company of Paytm.
Swiss Re is investing alongside Paytm’s Vijay Shekhar Sharma.
This follows the announcement of the acquisition of Raheja QBE by Paytm Insuretech Pvt. Ltd. The investment by Swiss Re and the acquisition of Raheja QBE by Paytm Insuretech Pvt. Ltd. are subject to regulatory approvals, the firm said in a statement.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.