Swiss Re to invest Rs 920 cr for 23% stake in Paytm’s insurance initiative

Financial services firm Paytm said today that its associate, Paytm Insuretech Private Limited (PIT), has entered into a strategic partnership with Swiss Re, one of the world’s leading providers of reinsurance, insurance and other forms of insurance-based risk transfer.

Swiss Re will invest (by way of equity shares and compulsorily convertible preference shares) about Rs 920 crore (Rs 397.3 crore upfront, and the remaining in tranches, subject to fulfilment of certain milestones) in PIT for an aggregate stake of 23 per cent on a fully diluted basis.

India’s insurance market presents a significant opportunity, given the market’s protection gap and under-penetration compared to the global average.