Centrum Group to float standalone insurance firm

Eyeing full-fledged insurance business, Centrum Group plans to set up a standalone insurance company over the next three-five years through both organic and inorganic routes. Separately, the group has won a Direct Insurance Broking licence and is targeting 500-crore revenue in the next five years from this business.

Anirudh Jain, Head-Insurance at Centrum Group, told BusinessLine: “We want to scale up our insurance business first and then we are aspiring to become a standalone insurance company. This is the natural progression for us.” There is a lot of potential for insurance business in India, he said.

The group is scouting to acquire between 5 and 49% stake in mid-size insurance firms, depending on the deal value of the target firms. However, it is yet to shortlist a firm.

Centrum Group has also been awarded a Direct Insurance Brokers licence by the Insurance Regulatory and Development Authority of India, which will enable it to tie up with all life, general and health insurance companies in India and sell their products.

“The insurance broking business is growing at 27% per annum and there exists a significant opportunity to scale up our operations. We are targeting to generate revenues of 500 crore through insurance premiums over the next five years, by leveraging synergies across the group’s other businesses of wealth management, housing finance and forex,” Jain said.

“We expect to sell one lakh policies by end of FY 2017-18,” he added.

Centrum forayed into insurance advisory service in April 2016 as a composite corporate agent. At present, it offers advisory services to corporates, high net worth individuals and retail clients. In its first year of business, the firm sold more than 10,000 policies. The new licence will enable Centrum to offer more customised services to its clients.