Noida: 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 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, 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.
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