Swiss Re, Reliance said to discuss health insurance JV

Indian financial services provider Reliance Capital (BOM:500111) and reinsurer Swiss Re (VTX:RUKN) are in talks for an eventual health insurance tie-up, The Economic Times said yesterday without revealing sources.

Sam Ghosh, Reliance Capital CEO, had refused to comment. A spokesperson for Swiss Re said the company does not want to comment on rumours.

The Indian daily wrote that the talks are in parallel with discussions over the Swiss reinsurer's equity holding in Reliance Cap's unit, Reliance Life Insurance.

According to earlier media reports, Swiss Re would buy 10% to 15% in Reliance Life Insurance for some INR15bn (USD337.33m/EUR251.53m), which values the unit at over USD3bn.

The companies have not commented on the reports.

Reliance has been negotiating with two other companies and is close to strike a deal by next month, The Economic Times' sources said. The talks are in a phase when Swiss Re could soon start a due diligence, they added.

Country: ; India; Switzerland

Sector: Insurance

Target: Reliance Life Insurance

Buyer: Swiss Re

Vendor: Reliance Capital Ltd

Deal size in USD: 337.3m

Type: Stakebuilding; JV

Status: Speculation; Talks

((Comments on this story may be sent to [email protected]))