Medi Assist buys Fairfax’s Paramount Health Services at ₹312 crore enterprise value

Bengaluru: Medi Assist, through its subsidiary Medi Assist TPA (third-party administrator), has acquired 100% of Mumbai-based firm Paramount Health Services and Insurance TPA Pvt. Ltd for an enterprise value of ₹311.8 crore.

The deal, which is subject to customary closing conditions and regulatory approvals from the Insurance Regulatory and Development Authority (Irdai), is likely to increase Medi Assist TPA’s market share to 36.6% in the group segment and 23.6% in the health insurance industry, the company said in a statement on Monday.

Owned by Fairfax Asia and Nayan Shah’s family, Paramount Health Services and Insurance TPA works with 30 insurers and over 3,000 group customers and retail policyholders.

A third-party administrator is an independent organisation that manages health insurance policies on behalf of an insurance company.

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The deal will enable Medi Assist to use its technology, artificial intelligence and machine learning-powered automation tools, and provider networks to position the combined business as a long-term strategic partner to general, SAHI (standalone health insurance) and life insurance companies.

“The coming together of two leading TPAs will go a long way in delivering on the promise of insurance for all by 2047,” Nayan Shah, managing director, Paramount Health Services and Insurance TPA, said.

Medi Assist's market position

Nishith Desai Associates acted as legal advisor to Medi Assist and AZB & Partners acted as legal advisor to Fairfax Asia and the Shah family.

Fairfax Asia Limited is a subsidiary of Fairfax Financial Holdings Limited, a Canadian holding company that is primarily engaged in property and casualty insurance and re-insurance.

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“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,” Satish Gidugu, chief executive officer of Medi Assist, said.

Medi Assist’s shares fell 0.75% to settle at ₹565.75 apiece on NSE on Monday.