UPDATE 1-Swiss Re, India's Religare in talks for jv -report

Thu May 28, 2009 3:06am EDT

* Talks over health insurance JV in India

* Planned investment of up to 5 bln rupees - report

* Companies decline comment

MUMBAI, May 28 (Reuters) - Swiss Re RUKN.VX, the world's second-largest reinsurer, is in talks with India's Religare Enterprises (RELG.BO) to form a joint venture health insurance company in India, the Economic Times said on Thursday.

Discussions for the venture were in advanced stages, the newspaper said, citing an unnamed executive from Religare.

The two companies planned to invest up to 5 billion rupees ($105 million) initially in the venture, it said, citing another person close to the development.

Religare and Swiss Re both declined to comment on the report.

Indian laws cap foreign shareholding in each insurance venture at 26 percent.

Swiss Re has a 26 percent stake in TTK Health Care (TTKH.BO), a third-party administrator in the health insurance sector, the paper said. (Reporting by Janaki Krishnan; additional reporting by Sam Cage in Zurich; Editing by Ranjit Gangadharan) ($1=47.7 rupees)