Flipkart co-founder Sachin Bansal’s bet on the insurance firm is part of his broader ambition in financial services industry.
The deal has been routed through Navi Technologies, formerly BAC Acquisitions which Bansal had founded along with IIT-Delhi batchmate Ankit Agarwal after selling stake in Flipkart in 2018. Sources said Bansal has bought out the entire stake in the insurer, held by Kapil Wadhawan-owned WGC. “Navi is actively scouting for opportunities in BFSI space,” a spokesperson for the company said when contacted . “Specifically, it is interested in the intersection of technology and financial services, where we believe technology can be harnessed to improve access and availability of financial services,” the spokesperson said.
DHFL General Insurance has about Rs 400 crore assets under management. “Bansal wants to get a footing into the banking and financial services sector. There has been a lot of talk about him being keen on obtaining a banking licence and has been looking at opportunities in the asset management space,” a source said. Bansal’s move to step into the insurance sector comes on the back of Navi Technologies acquiring a majority stake in Chaitanya Rural Intermediation Development Services, which runs a microfinance platform. Having picked up more than 90% stake in Chaitanya, he took over as its chief executive last year.
According to the information from sources, the Indian Space Research Organisation (ISRO) is eying to buy its first insurance policy for a domestically launched space satellite, the first since it began launching satellites in 1975. There can be two factors which are expected to have been influencing ISRO to begin buying satellite insurance.
Firstly, there is an unexpected setback in Project Chandrayaan-2, which cost nearly INR10 billion (US$139.4 million). Secondly, there is the success of ISRO’s Mars mission, which brought down reinsurance rates for Indian space exploration activities.
While ISRO has not insured launches conducted on Indian soil, it has typically insured launches done in partnership with other countries, such as Russia and the US. New India Assurance and other state-owned insurers were typically those tapped to provide cover for these projects, with reinsurance from the international market.
A measure of profitability used by an insurance company to indicate how well it is performing in its daily operations.
The combined ratio is defined as
The sum of incurred losses and operating expenses measured as a percentage of earned premium.
The combined ratio is comprised of the claims ratio and the expense ratio.
The claims ratio is claims owed as a percentage of revenue earned from premiums.
The expense ratio is operating costs as a percentage of revenue earned from premiums.
The combined ratio is calculated by taking the sum of incurred losses and expenses and then dividing them by earned premium.
It is a measure of the profitability of the insurer. (The ratio is typically expressed as a percentage.)
The combined ratio shows the underwriting profitability of the insurer. A ratio below 100% indicates that the company is making underwriting profit while a ratio above 100% means that it is paying out more money in claims that it is receiving from premiums.