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Just days after hiving off its forex business, Centrum Capital is gearing up to add another financial services vertical to its portfolio. The group, which is already into investment banking, corporate finance and wealth management is now looking to make an entry into the insurance space, say sources.

Centrum Group is likely to have initiated preliminary discussions with Aspire Health Insurance to make a brownfield entry into the standalone health insurance space.

Aspire Health Insurance, on its part, is currently in the process of seeking approvals from Insurance Regulatory and Development Authority of India (IRDAI) to start its operations.

Centrum Capital is a three-way joint venture between Hong Kong-based Macquarie Investment Fund, domestic private equity player, Arth Capital and former PNB MetLife MD, Rajesh Relan.

Sources add that if the discussions between Centrum Capital and Aspire Health Insurance materialise, then the deal is likely to move towards an arrangement where Aspire Health Insurance will issue fresh equity to Centrum Capital making it the fourth partner in the existing joint venture.

There are only six standalone health insurance companies operating in the country and Centrum Capital intends to take a slice of this growing market. Standalone health insurance segment is the fastest growing segment of the industry recording a CAGR of 35% in the past five years, though pricing discipline remains to be a challenge here.

However, Centrum Capital said the company is not in discussion and does not intend to partially or fully acquire Aspire Health Insurance.

First Published:Apr 6, 2018 8:44 PM IST