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Paytm Insuretech brings in Swiss Re as a strategic investor for its General Insurance business
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- Swiss Re will invest (by way of equity shares and compulsorily convertible preference shares) approximately ₹ 9,200 million (₹ 3,973 million upfront, and the remaining in tranches, subject to fulfilment of certain milestones) in PIT for an aggregate stake of 23% on a fully diluted basis, subject to regulatory approval.
- Through an investment in PIT, Swiss Re and Paytm will work towards closing the insurance protection gap in the market.
Paytm, India’s leading digital ecosystem for consumers and merchants(1), today announced 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) approximately ₹9,200 million (₹3,973 million upfront, and the remaining in tranches, subject to fulfilment of certain milestones) in the PIT for an aggregate stake of 23% 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 $27 billion as of FY2021 to US$ 50- 60 billion by FY 2026(1), as per RedSeer data.
Paytm Insuretech plans to leverage Paytm’s customer base and merchant ecosystem to develop innovative insurance products and offer best-in-class solutions. As part of Paytm’s financial inclusion offering, this partnership is in furtherance of the company’s mission to bring half a billion Indians into the mainstream economy.
Paytm’s Vijay Shekhar Sharma (Chairman, MD & CEO of One 97 Communications) said:
“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.”
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.
About Swiss Re:
The Swiss Re Group is one of the world’s leading providers of reinsurance, insurance and other forms of insurance-based risk transfer, working to make the world more resilient. It anticipates and manages risk – from natural catastrophes to climate change, from ageing populations to cybercrime.
The aim of the Swiss Re Group is to enable society to thrive and progress, creating new opportunities and solutions for its clients. Headquartered in Zurich, Switzerland, where it was founded in 1863, the Swiss Re Group operates through a network of around 80 offices globally.
About Paytm:
Paytm is India’s leading digital ecosystem for consumers and merchants (1), and offers payment services, commerce and cloud services, and financial services to 333 million consumers and over 21 million merchants, as on March 31, 2021.
Paytm is India’s largest payments platform (1) based on the number of consumers, number of merchants, number of consumer to merchant transactions and revenue, as on March 31, 2021, and with an FY21 GMV of ₹4,033 billion.
(Economy India)