Future growth options for Niva Bupa could include public listing of business

True North has agreed to sell a significant part of its stake in Niva Bupa, a leading Indian health insurance company, to its joint venture partner, Bupa, for around Rs 2,700 crore, subject to IRDAI approval.

This transaction will mean Bupa becoming Niva Bupa's majority shareholder.

True North believes that the time is right for Bupa to take a majority shareholding in the business to propel Niva Bupa to its next stage of growth.

Future growth options could also include the public listing of the business.

The move comes as India's insurance industry is experiencing strong growth amidst increasing awareness and demand for health insurance.

True North is set to sell around 20 per cent of its stake in the business to Bupa, increasing Bupa's shareholding to approximately 63 per cent.

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 per cent of an Indian insurer.

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.

Since 2019 True North has worked closely with Bupa on implementing a successful strategy for Niva Bupa.

The joint venture partners have worked closely to put Niva Bupa on a strong growth trajectory, adding innovative new products, setting up a multi-channel distribution network and making the business increasingly customer-centric.

In FY 23, Niva Bupa became the third-largest retail health insurer, achieving more than Rs 4,000 crore GWP and expanding its presence to nearly every district in the country.