Digital payments company Paytm announced that its associate, Paytm Insuretech Ltd (PIT), has entered into a strategic partnership with Swiss Re.
Swiss Re, a leading provider of reinsurance, insurance and other forms of insurance-based risk transfer, will invest (by way of equity shares and compulsorily convertible preference shares) approximately Rs. 920 crore to buy 23% stake in Paytm Insuretech.
“We are excited to partner with Swiss Re for our insurance foray as a key strategic investor. It is an important milestone in our financial services journey of taking general insurance products to the masses. We look forward to gaining from Swiss Re’s global insurance capabilities and building innovative products to tap into the Indian market,” said Paytm chairman Vijay Shekhar Sharma.
In the scheme of arrangement, Rs. 397 crore will be paid upfront, and the remaining in tranches. India’s insurance market presents a significant opportunity, given the market’s protection gap and under-penetration compared to the global average.
Gross written premium for non-life insurance is expected to increase from $27 billion as of FY21 to $50-60 billion FY26, as per RedSeer data.
Paytm, which offers payment services, commerce and cloud services, and financial services to 333 million consumers and over 21 million merchants, said “Paytm Insuretech plans to leverage Paytm’s customer base and merchant ecosystem to develop innovative insurance products and offer best-in-class solutions.”
“As part of Paytm’s financial inclusion offering, this partnership is in furtherance of the company’s mission to bring half a billion Indians into the mainstream economy,” it said.
