Kathmandu. Indian Yogi Ramdev’s Patanjali Ayurveda, which has made yoga a means of expanding its daily consumer goods business, has also entered the non-life insurance business. Patanjali Ayurveda, along with other investors, has entered the non-life insurance business by purchasing a majority stake in Magma General Insurance.
According to the Indian insurance regulator, the Insurance Regulatory and Development Authority of India, Patanjali Ayurveda, along with other investors, has purchased the ownership stake in Senoti Properties, a joint venture between businessman Adar Poonawalla and Rising Sun Holdings. Senoti Properties had a 74.5 percent stake in Magma General Insurance. With the share sale, Senoti Properties has completely exited Magma.
Senoti Properties, which is held by Poonawalla and Rising Sun Holdings Private Limited in the ratio of 90 percent:10 percent, holds 72.5 percent stake in Magma as of November 11, 2024. In the last few years, the Poonawalla group has invested INR 10.65 billion, gradually increasing its shareholding to 72.5 percent. The financial terms of the deal have not been disclosed, the Asian Insurance Post reported.
According to the Post, along with Patanjali Ayurveda, other investors who have bought stakes in Magma General Insurance are SR Foundation, Rithi Foundation, RR Foundation, Suruchi Foundation and Swati Foundation.
Magma General Insurance is focused on promoting insurance in urban-oriented market centers, especially in rural areas of India.
The Indian government has set a goal of insuring all Indians by 2047. To achieve this goal, the government has started a rapid process of opening up 100 percent foreign investment in insurance companies and facilitating domestic insurers through policies. In addition, it is also running an insurance program with subsidies to ensure easy access to insurance for the underprivileged, poor and senior citizens.
Women volunteers have also been mobilized as insurance carriers to promote door-to-door insurance in rural areas. The government-owned life insurer, Life Insurance Corporation of India (LIC), has also announced a campaign to mobilize women agents in rural areas. LIC has given priority to recruiting women agents, including making them participate in a one-month agent training course, ensuring a minimum wage and distributing commission based on work.
