facebook-page-view
Advertisement

Magma HDI raises funding from ICICI Venture, Morgan Stanley, Poonawala group, others

By TEAM VCC

  • 16 Mar 2021
Magma HDI raises funding from ICICI Venture, Morgan Stanley, Poonawala group, others
Credit: 123RF.com

Magma HDI General Insurance has raised funding from ICICI Venture and Morgan Stanley Private Equity Asia, Cyza Chem (Poonawalla Group company) and two family offices, the company said in a statement.

The total transaction size is Rs 525 crore: primary capital-raise of Rs 250 crore and secondary sale of Rs 275 crore.

The fresh capital will be used for expanding distribution capabilities. The secondary sale helps Magma Fincorp and group companies in complying with guidelines for ownership of insurance companies, the statement said.

Advertisement

“The growth capital which the investors bring on board will enable us to expand the business and explore new opportunities. The insurance sector is poised to see exponential growth given the low penetration and the trigger of the pandemic,” said Rajive Kumaraswami, managing director and chief executive officer, Magma HDI.

“I see huge potential in the growth of Magma HDI which is a young and fast-growing company. We are confident that it can reach its full potential in the next few years,” said Adar Poonawalla, chief executive officer, Serum Institute of India.

Magma HDI’s solvency stood at 1.81 times as on 31 December 2020, against the required regulatory solvency of 1.5.

Advertisement

For the nine months ended December, the company recorded a profit after tax of Rs 22.3 crore on a gross written premium of Rs 911.2 crore compared with Rs 7.3 crore PAT on a GWP of Rs 948.5 crore last year. 

As of December, the investment book stood at Rs 2,881 crore.

Magma HDI, a joint venture between Magma Fincorp and HDI Global SE, Germany, offers general insurance products for retail and institutional clients. 

Advertisement

It has 133 branches, with over 1,000 employees and has serviced over 40 lakh customers so far.

Share article on

Advertisement
Advertisement