Sale deal in final stage of completion: Star Health

 

CHENNAI, Mar 19: Private sector insurer Star

Health and Allied Insurance Company Ltd was in the final stage

of completion of sale process and the transition was likely to

happen in first quarter of the next financial year, a top

official said.

“A consortium has won the sale process and in

April-May-June we look forward to transition happening,”

company Chief Operating Officer, Dr S Prakash said here.

A consortium of WestBridge AIF, investor Rakesh

Jhunjhunwala and Madison Capital signed definitive agreements

with the shareholders of Star Health to purchase the shares of

the insurer last year.

In October 2018, the Competition Commission of India

(CCI) approved 100 per cent acquisition of Star Health and

Allied Insurance Company Ltd by Safecrop Holdings Pvt Ltd and

others.

In a brief interaction with PTI, here, recently,

Prakash said, with the newer consortium coming on board the

company was expecting to move from “good” to “great” in terms

of business.

“We are number one in retail market with 24 per cent

of the share in retail health insurance sector. With focus on

technology and positive drives that are happening in the

organisation, we are confident at this phase we are moving

from good to great,” he said.

Noting that the company has been aggressively growing

over the last few years, he said, “we are adequately solvent

and our focus can be more into one hundred per cent of the

business and the branches that we (have) established.”

“We have laid our foundation strong. So, now it is

duty to build further,” he said.

Asked about company financials, he said, “the company

was looking at posting Rs 5,450 crore (as Gross Written

Premium in 2018-19) and next (financial) year the aim is to

reach around Rs 7,000 crore (GWP).”

To a query on future plans, he said, the company

intends to focus more on customer service.

“From the level of networking with a hospital, the

type of services that we can gain from a hospital, the

technology platform that we putforth….these are all going to

be focus areas in the years to come,” the Star Health COO

said.

On whether the company would strengthen presence in

rural areas, he said, “we have penetrated into all areas.

Although tier-II and III cities is our focus. These are the

areas where insurance is not well penetrated. So, we will have

to grow.”

The company was in the process on how can they serve

tier II and III cities, he added.

Star Health set up in 2006 provides health insurance,

overseas mediclaim and personal accident policies. The company

has a network of 461 branches, over 2.4 lakh agents and tie-up

with 8,500 network hospitals. (PTI)

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