The Shriram Group has indicated that it is looking to bring in new investors like KKR into its insurance businesses, which will be the major focus segments for the group in the coming decade.

“Both our general and life insurance companies are doing well and are profitable. They don’t need any capital per se. But what we felt was bringing in new investors will enable price discovery of the business, and if we go for listing, having a private equity investor will help. Also, Shriram Capital can use that money for other purposes like increasing the shareholding,” Managing Director, Shriram Transport Finance Company, Umesh Revankar, who will be one of the four members of Board of Management of the group, told BusinessLine .

General insurance

Currently, the company is scouting for new investors for the general insurance business, in which Shriram Capital (earlier known as Shriram Financial Holdings Pvt. Ltd.) has 76.63 per cent stake, while Sanlam Emerging Markets (Mauritius) Ltd holds 22.92 per cent. The remaining 0.45 per cent is with the public, according to a company document. Started with a low capital of about ₹250 crore, Shriram General Insurance Company, headquartered in Jaipur, has paid more than ₹1,000 crore in dividends in the past 10 years and has set some records in the settlement of claims, thereby providing a lot of savings to the insurers and truckers in particular.

Revankar said the group was working with private equity firm KKR for its investment in the general insurance arm. “We have been very friendly with all investors and KKR is one of the largest players in India. Their coming in will definitely help in showcasing our insurance business. The due diligence process is still on. We will soon finalise the deal,” he added.

According to industry players, ICICI Lombard General Insurance was valued 40 times its PAT, while New India Assurance had a valuation of 22 times its PAT.

Revankar said all these years the group’s lending businesses were showcased. Now, the group intends to grow its insurance business.

“In Shriram group, insurance will be the prime focus of the next decade – both life and general. We would like to grow them big and that is the plan at the group level. We will definitely drive all our energies and synergies in the lending company towards building the insurance business,” he added.

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