Medi Assist Healthcare unit to acquire Paramount TPA

27 Aug 2024 , 02:43 PM

On Monday (August 26), Medi Assist Healthcare Services Ltd announced that its subsidiary, Medi Assist Insurance TPA Private Ltd, will acquire a 100% equity position in Paramount Health Services & Insurance TPA Private Ltd (Paramount TPA) for ₹311.8 Crore.

Following this development, the company’s counter hit a new 52-week high of ₹639.

Fairfax Asia owns Paramount Health Services & Insurance TPA, as does Dr. Nayan Shah and his family. The acquisition is one of the largest TPA deals in India, with equity value estimated to reach ₹400 Crore.

The transaction was finalised on August 26, 2024, through a share purchase agreement. The said agreement is subject to approval from the Insurance Regulatory and Development Authority of India (IRDAI) and fulfilment of routine closing procedures.

Paramount TPA, founded in 1996 and approved by IRDAI in 2002, is one of India’s top third-party administrators, focussing in handling health insurance policies in the group, retail, and government sectors.

In FY24, Paramount TPA collected ₹3,866 Crore in premiums from the group and retail divisions, resulting in a revenue of ₹153 Crore. The company’s significant market presence, notably in the group category, where it is the second-largest TPA in terms of premiums, adds value to Medi Assist’s portfolio.

With the addition of Paramount TPA, Medi Assist’s market share in terms of premiums managed in the group segment will climb to 36.6%, while its overall market share in the health insurance industry (including both group and retail segments) will increase to 23.6% in FY24.

At around 10.56 AM, Medi Assist Healthcare was trading 8.27% higher at ₹608.20, against the previous close of ₹561.75 on NSE.

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