Discovery Shortlisted for Indian Insurance Venture

November 18 - An Indian financial services company, Religare Enterprises, has shortlisted the South African health insurance group, Discovery, to enter into a joint venture.

Discovery is one of three international companies that have made the shortlist, including Bluecross Blueshield from the United States.

The joint venture would see Religare own a majority stake in the new insurance company, which aims to hire over 2,500 people over the next five years.

The public listed Religare has the financial backing of billionaire brothers, Malvinder and Shivinder Singh.

Religare said that it would go ahead with a wholly owned venture if the negotiations with Discovery or the other two shortlisted group did not advance.

"Religare had been negotiating with Aetna, the United Health Group and Munich Re, but talks did not progress and these names can be ruled out," said an industry source.

Religare would only confirm that it was currently in negotiations with "multiple players" but would not share their names due to confidentiality agreements.

The group recently bailed out of a non binding agreement that it had with Swiss Re.

The Chief Executive Officer of Religare, Anuj Gulati said that if negotiations were successful, the name of the new partner would be announced by February 2010.

"We have set an internal deadline of 90 days to finalize a suitable partner," he said. "If we don't get a partner, we will go independently."

Discovery is one of South Africa's leading insurance groups and offers innovative and unique financial services and assurance products.