Chennai, Nov 25 (Inditop.com) Apollo DKV Insurance is in talks with three insurers for partnership agreements, a top official said here Wednesday.
“We are talking to life and non-life insurers for a possible co-insurance arrangement,” Antony Jacob, chief executive of the health insurer, told reporters after launching a new health insurance policy.
According to him, the tie-ups will help the company earn higher premium income.
“We will design a health insurance product for other companies to sell and get a portion of the total premium earned,” Jacob said.
The Rs.49-crore Apollo DKV has already entered into a similar agreement with private insurer HDFC Ergo General. According to the agreement, HDFC Ergo is selling a product designed by Apollo DKV.
“While HDFC Ergo takes 51 percent of the premium earned, we get the balance. For non-life and life insurers, health insurance is one of the many products in their portfolio whereas it is our core business,” Jacob added.
The tie-up with HDFC Ergo fetches Apollo DKV around Rs.2.5 crore per month, he said, adding that the company was open to varied revenue sharing options with potential partners.
Apollo DKV is a 74:26 joint venture between the city-based Apollo Hospitals group and Europ’s health insurance giant Deutsche Krankenversicherung AG (DKV).
The Rs.220-crore equity company may require an additional equity infusion of around Rs.50 crore by 2010 to meet its network expansion expenditure, Jacob said.
“We will increase our branch network by six to 30 this year and further take it to 42 next year. In addition, funds will be needed for our brand building and promotions.”
The company will also increase its headcount to 500 by March 2010 from the current 432 and double the number of its policy selling agents to 2,000 by next march.
The company is expected to close this fiscal with a premium income of Rs.105 crore. The premium it earned during the first half was Rs.60 crore, said Jacob.