Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares

About Care Health (Previously Religare Health) Insurance:

(i) Care Health (Previously Religare Health) Insurance, the health insurance arm of Religare Enterprises Limited (REL), is a specialized Health Insurer offering health insurance services to employees of corporates, individual customers, and financial inclusion as well. RHI commenced business in 2012 and currently has three major shareholders – Religare Enterprises Limited, Union Bank of India and Corporation Bank.

(ii) Care Health (Previously Religare Health) Insurance currently offers products in the retail segment for Health Insurance, Critical Illness, Personal Accident, Top-up Coverage, International Travel Insurance and Maternity along with Group Health Insurance and Group Personal Accident Insurance for corporates.

Health Insurance Sector:

(i) The total size of Health Insurance in India stands at 50,891 Crores in FY 18-19, up by 18.3% from last year. There are three categories of health insurance providers in India.

a) Public Sector Institutions (53% market share)
b) Private Institutions (~23.5% market share )
c) Stand-alone insurers (~23.5% market share )

However, in terms of retail policies, Stand Alone Health Insurance Companies (SAHI) have the biggest share of 44%. and Religare Health Insurance falls under this category.

(ii) Care Health (Previously Religare Health) Insurance is a SAHI and ranks number 6 overall and number 3 in GDP.

(iii) Care Health (Previously Religare Health) Insurance is servicing over 700 locations across the country with a network of 110 plus branches and 9,450 plus hospitals. It has a product bouquet of 18 products encompassing group, travel, and fixed benefits to serve varied customers.

(iv) The company is highly customer-centric with a low grievance rate of two complaints per 10,000 policies and has a claim settlement ratio of 93%. The combined ratio of the company stands at 97%. RHI has also won various awards like – ‘Best Claims Service Provider of the Year’, ‘Bancassurance Leader of the Year 2018’ by Insurance India Summit & Awards 2018, ‘India’s Most Preferred Travel Insurance’ by IMP Travel Brand Awards 2018, etc.

(v) Care Health (Previously Religare Health) Insurance is marketed by a team behind the hospital chain known as Fortis Health Care. It is one of six standalone health insurers in India.

Big Announcement by ICICI Securities (30 April 2019):

ICICI Securities, one of India’s leading financial products distributor, announced that it has partnered with Religare Health Insurance to distribute the latter’s health insurance products. The products would be distributed on ICICI Securities award-winning platform I- Sec. Further, the company’s 200+ retail outlets spread across the country would also be involved in distributing the products. This is the first pure-play health insurance company with which ICICI Securities have tied up.

Valuation of the Company:

(i) In 2017, Religare Enterprises who was holding 80% stakes planning to sell a stake in Religare Health Insurance to a consortium of investors led by private equity fund True North Managers for an estimated Rs 1,040 crore. The estimated valuation at that time was around 1300 Cr. However, the deal didn’t go through as some changes were made at the last moment in the agreement by promoters. The case is currently under arbitration.

(ii)  Now in Feb-19, the company has issued 93,26,726 lakh shares for expansion to the following investors at Rs. 34.31 valuing the company at ~2400 Cr.

1. Gland Celius Biochemicals Private Limited – 1,457, 301
2. Kaushal Agarwal – 1,45,730
3. Sandeep Thapliyal – 1,45,730
4. Arvind Bansal – 1,45,730
5. Swarnim Multiventures Pvt Limited –  1,45,730
6. LKP Finance limited – 72,86,505.

Annual Report 2018-19 Snapshot by UnlistedZone Team