True North agrees $326m India health insurance exit

The private equity firm acquired a 51% stake in the company in February 2019 for INR 5.1bn (then USD 72m). At the time, it was a joint venture between Bupa and Indian conglomerate Max India, known as Max Bupa Health Insurance. The rebrand to Niva occurred in mid-2021 with the exit of Max.

Bupa’s acquisition is said to be one of the largest transactions in the Indian insurance industry by a global player since the local regulator permitted foreign entities to own up to 74% of an Indian insurer. It will give Bupa a 63% position.

Bupa helped establish Niva in 2008 and began operations in 2010. The company offers health insurance and cashless treatment services to 10m Indians via 200 offices, a network of 10,000 hospitals, and 20 partner banks, which have more than 45,000 branches. It claims to be one of the fastest-growing health insurance companies with an annual average claim settlement ratio of 90%.

Operational work during True North's holding period included supporting the establishment of joint venture partnerships, adding new products, setting up a multi-channel distribution network, and improving customer experience. During this period, gross written premiums quadrupled to INR 40bn.

In the 2023 financial year, Niva became India’s third-largest retail health insurer, having more than doubled its market share and expanded its presence to nearly every district in the country. True North and Bupa flagged the possibility of a public listing amidst growing domestic awareness and demand for health insurance.

“[The transaction] gives renewed energy to both the employees and stakeholders of Niva Bupa to pursue growth and deliver on our purpose, which is to give every citizen of India the confidence to access the best healthcare,” Niva CEO Krishnan Ramachandran said in a statement. “This also enhances our ability to bring global best practices to our business.”

True North acquired Niva via its sixth fund, which closed on USD 560m in mid-2019. Fund VII is set for launch this year, although a target has not been confirmed. Divya Sehgal, a partner at the firm, told Mergermarket, AVCJ’s sister publication, that there were plans to deploy about USD 1.5bn over the next three years.

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• Topics
• South Asia
• Healthcare
• Financials
• Trade sale
• India
• True North
• insurance