Medi Assist Insurance TPA announced the signing of definitive documents for 100% acquisition of Paramount Health Services & Insurance TPA (“Paramount TPA”), a prominent player in the TPA space, owned by Fairfax Asia and the Shah family.
The acquisition, valued at Rs. 311.8 crore for the Enterprise and anticipated to surpass Rs. 400 crore in Equity Value is among the largest third-party administrator (TPA) deals in India. Once finalized, Medi Assist is expected to boost its market share by approximately 6% in the Group insurance segment and by around 4% across the overall health insurance market, including both Group and Retail segments, based on March 2024 projections. The acquisition is of course pending IRDAI approvals.
The acquisition is a significant milestone for Medi Assist, strengthening its leadership in the TPA sector. It is contingent on standard closing conditions and regulatory approval from the Insurance Regulatory and Development Authority of India (IRDAI). The deal is set to enhance Medi Assist’s technology, including AI and machine learning, and expand its provider networks, positioning the company as a strategic long-term partner for general, SAHI, and life insurers.
Gobinath Athappan, Chairman & CEO, Fairfax Asia said, “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.”
Dr. Nayan Shah, MD Paramount TPA said, “The coming together of 2 leading TPAs will go a long way in delivering on the promise of Insurance for all by 2047.”
Satish Gidugu, CEO Medi Assist said, “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.”
Paramount TPA works with 30 Insurers and 3,000+ group customers and retail policyholders. With the acquisition of Paramount TPA, Medi Assist TPA market share will grow to 36.6% for the group segment and 23.6% of the health insurance industry, by premiums managed.