Industry sources have said though a few names including Deepak Sankar Mullassery,·Head- Commercial Business Distribution at TATA AIG General Insurance, are doing the round to be appointed as the first CEO of the company, which has already applied for a license from the IRDAI, the insurer is yet to finalise any name yet
Mumbai: Getting ready to start its operations soon, Jio Allianz General Insurance, a 50:50 general insurance joint venture between Mukesh Ambani owned Jio Financial Services and Allianz Europe B.V. has appointed a new CEO while receiving a large fund infusion of Rs 640.1 crore from both the partners on Wednesday.
The fund infusion has happened through a rights issue by both the parters who have paid ₹320.05 crore each, taking the total capital raised by the joint venture to ₹640.1 crore.
Industry sources have said though some names including Deepak Sankar Mullassery,·currently Head- Commercial Business Distribution at TATA AIG General Insurance, are doing the round to be the first CEO of the company, which has already applied for a license from the IRDAI, Jio Allianz General Insurance has not confirmed any name yet.
“We will announce the name of our first CEO shortly,” said company sources.
The investments were made in cash at par and will be used to fund the insurer’s business operations, Jio Financial Services said in a regulatory filing.
With Rs 640.1 crore of capital infusion, the company has a much larger capital than other companies which have started their operations in recent times.
Kiwi General Insurance, a joint venture between West Bridge Capital and Neelesh Garg, former CEO of Tata AIG General Insurance has an authorized share capital of ₹200 crore and an initial/paid-up capital starting around ₹140–150 crore.
Stand alone health insurance company Prudential HCL Health Insurance has an authorized share capital of ₹3,500.00 crore and a paid-up capital of ₹536.66 crore
Under the rights issue, both partners subscribed equally to 32,00,50,000 equity shares of ₹10 each, with each investing ₹320.05 crore.
The latest capital infusion takes Jio Financial Services’ cumulative investment in Jio Allianz General Insurance to ₹375 crore.
Jio Allianz General Insurance is a 50:50 joint venture between Jio Financial Services and Allianz.