ICICI Venture to invest Rs 120-cr in Star Health
Private equity firm, ICICI Venture, said that it plans to invest Rs 120 crore in Star Health and Allied Insurance Company, marking the first private equity deals in the Indian health insurance sector.india Updated: Apr 01, 2010 14:07 IST
Private equity firm, ICICI Venture, on Thursday said that it plans to invest Rs 120 crore in Star Health and Allied Insurance Company, marking the first private equity deals in the Indian health insurance sector.
For ICICI Venture, a subsidiary of ICICI Bank, this would be the maiden investment from its new $ 500 million PE fund India Advantage Fund Series 3, a press release issued here stated.
Star Health is a Chennai-headquartered company headed by V Jagannathan, which has garnered a gross premium of around $ 200 million in the current fiscal.
"We believe that the Indian health insurance market is poised for an exciting future given the low penetration levels witnessed historically despite a clear underlying consumer need. We believe that Star and its visionary management team led by Mr Jagannathan is currently best-positioned to tap this opportunity," ICICI Venture Managing Director & CEO, Vishakha Mulye, said.
Star Health is promoted by shareholders of the ETA Ascon group (a Middle-East-based conglomerate) and Oman Insurance Company, a subsidiary of the UAE-based Mashreq Bank.
The Indian health insurance industry has grown at an annual rate of over 35 per cent since the opening up of the sector in 2000 but the market continues to be significantly under-penetrated in comparison with other countries.