Medi Assist Insurance TPA, a wholly owned subsidiary of Medi Assist Healthcare Services is all set to acquire 100% stake in Paramount Health Services & Insurance TPA, a well-known TPA player owned by Fairfax Asia and the Shah family. This acquisition is a significant step forward in the TPA industry, cementing Medi Assist’s position as a market leader. The deal is subject to usual closing conditions and Insurance Regulatory Authority of India (IRDAI) clearance.
“The acquisition represents one of the largest TPA deals in India, with an enterprise value of Rs 311.8 crore, and equity value expected to exceed Rs 400 crore, subject to regulatory (IRDAI) approvals,” Medi Assist Healthcare Services said in a press release.
Paramount TPA works with 30 insurers, over 3,000 group customers, and retail policyholders. Based on premiums managed, Medi Assist TPA’s market share will increase to 36.6% in the group segment and 23.6% in the health insurance business with the acquisition of Paramount TPA.
“Paramount TPA has performed really well over the past years under Dr. Nayan Shah’s leadership. We are thrilled that in its new home, Medi Assist TPA, it will reach greater heights,” said Gobinath Athappan, Chairman & CEO, Fairfax Asia.
This purchase is expected to leverage Medi Assist’s technology, automation (AI/ML), and provider networks, positioning the merged company as a long-term strategic partner to insurers (General, SAHI, and Life).
“Paramount TPA’s 28 years of leadership in the TPA industry stands testament to its success. Our COO, Atman Shah’s leadership, has been instrumental in the growth of the business. The coming together of 2 leading TPAs will go a long way in delivering on the promise of Insurance for all by 2047.” said Dr Nayan Shah, MD Paramount TPA.
“This strategic move strengthens our market leadership and aligns with our long-term vision of making quality healthcare accessible and efficient. I welcome the Paramount team to the Medi Assist family and to achieving greater milestones,” said Satish Gidugu, CEO Medi Assist.
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
