Reliance Capital (RCL), a part of the Anil-Ambani led Reliance Group, today announced plans to separate out its retail Health Insurance business, from its General Insurance business, into a standalone, wholly owned subsidiary.

The board of directors of Reliance General Insurance Company (RGIL), a subsidiary of Reliance Capital (RCL), has approved this proposal, subject to necessary IRDA and other approvals.

Reliance Health Insurance, the proposed new company for Health Insurance business, will be a wholly owned subsidiary of Reliance Capital.

RGIL has a well-established portfolio of health insurance business that offers a comprehensive range of competitive products to consumers. The business recorded Gross Written Premium of Rs 5.70 billion
(USD 87 million), as of March 31,2016 through its network of over 175 branches across the country.

Health insurance in India has been amongst the fastest growing insurance sectors and is expected to nearly double to nearly Rs 500 billion (USD 8 billion) by 2020.

The proposal will enhance management focus on Health insurance and provide flexibility to the company to unlock value by bringing in global leaders in this space as strategic and equity partners.

Reliance Capital has appointed Ravi Viswanath, with over 20 years global experience in health insurance, as proposed CEO of the new company.

Shares of the company gained Rs 26.15, or 4.7%, to trade at Rs 582.55. The total volume of shares traded was 658,981 at the BSE (12.56 p.m., Thursday).