- Following regulatory approval by India’s Insurance Regulatory and Development Authority, Bupa has completed its agreement to increase its stake in Niva Bupa with its shareholding growing by 20% to 63%
- Niva Bupa currently serves over 11 million customers and Bupa's investment will support the next stage of growth across India as customer demand for health insurance increases
- True North will continue as a significant minority partner to the business
Bupa, the global healthcare company, has become the majority shareholder in Niva Bupa, a leading Indian health insurer. In September, Bupa's joint venture partner, True North, agreed to sell a significant part of its stake in Niva Bupa. This transaction has now received regulatory approval which means that Bupa's shareholding has increased by around 20% to approximately 63%. The move comes as India's insurance industry is experiencing strong growth amidst increasing awareness and demand for health insurance.
Bupa was a founding shareholder when the business (then known as Max Bupa) was first established in India in 2008. True North, the Indian private equity firm, became Niva Bupa's majority shareholder in 2019. Over the last few years, Niva Bupa has had a strong growth trajectory, adding innovative new products, setting up a multi-channel distribution network and making the business increasingly digital and customer-centric. In 2023, Niva Bupa became the third-largest retail health insurer in India with 11.9 million customers and expanded its presence to nearly every region in the country. Bupa's new investment will help to propel Niva Bupa to its next stage of growth.
The share transfer is one of the largest transactions in the Indian insurance industry by a global player since the IRDAI (Insurance Regulatory and Development Authority of India) permitted foreign entities to own up to 74% of an Indian insurer.
Iñaki Ereño, Group CEO of Bupa said: “We are immensely proud of how we have helped Niva Bupa grow into such a flourishing and successful business over the years. 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.”
Krishnan Ramachandran, Managing Director and CEO of Niva Bupa said: “I am very excited by this vote of confidence in the health insurance opportunity in India and in the future of Niva Bupa. It 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. This also enhances our ability to bring global best practices to our business in order to provide an outstanding customer experience.”
Divya Sehgal, Partner, True North, said: “We are pleased to see Niva Bupa's transformation in the last few years. Niva Bupa's market share has significantly increased since 2019, a testament to the firm's exceptional management and its bright future. Bupa has consistently proven to be a strong partner on this journey, and we are confident that this decision will further strengthen our collaboration and drive continued success for Niva Bupa.”
