Home-grown private equity fund True North on Friday (September 29) said it's selling a significant part of its stake in Niva Bupa, a standalone health insurance player, to its joint venture partner, Bupa, for around Rs 2,700 crore.

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This transaction is subject to the Insurance Regulatory and Development Authority (IRDAI) approval.

This transaction will mean Bupa becomes Niva Bupa's majority shareholder. True North is set to sell around 20 percent of its stake in the business to Bupa, increasing Bupa’s shareholding to approximately 63 percent.

On approval, the share transfer will be one of the largest transactions in the Indian insurance industry by a global player since the IRDAI permitted foreign entities to own up to 74 percent of an Indian insurer.

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Bupa, an international healthcare company headquartered in the UK, was a founding shareholder when the business was first established in India in 2008. True North, one of India’s most experienced private equity firms, became Niva Bupa’s majority shareholder in 2019.

Divya Sehgal, Partner, True North, said, "The company’s premium crossed Rs 4,000 crore last year, a significant increase from Rs 1,000 crore at the time of our initial transaction in 2019.

Niva Bupa’s market share has also more than doubled in this tenure, a further testament to the firm’s exceptional management and its bright future."

In FY23, Niva Bupa became the third-largest retail health insurer, achieving more than Rs 4,000 crore Gross written premium (GWP) and expanding its presence to nearly every district in the country.

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Iñaki Ereño, Group CEO of Bupa said, "In becoming a majority shareholder, we are building on the foundation of our strong partnership with True North. We look forward to using our market expertise and global scale to help Niva Bupa continue to grow and serve even more customers with their healthcare needs."

First Published:Sept 29, 2023 9:38 PM IST