A consortium of Rakesh Jhunjhunwala along with WestBridge Capital has acquired Chennai-based Star Health Insurance.
Though the deal amount has not been officially disclosed, reports say it is of Rs 6,500 crore. Rakesh Jhunjhunwala-led consortium outshined ICICI Lombard General Insurance which had placed a bid amount of about Rs 5,800 crore to acquire the Health insurance Company.
Sumir Chadha, co-founder & MD, WestBridge Capital, said, “We are really excited about Star Health, a dominant market leader in the retail health insurance industry. We believe the retail health insurance industry will continue to grow at a healthy pace in the coming decade, driven by increasing penetration. This aligns well with WestBridge’s investing philosophy and long-time horizon. We are highly confident of Star’s business model and believe that Star will continue to lead the retail health insurance space.”
Founded in 2006, Star Health Insurance is India’s largest health insurance company in terms of profits and premium. Having 10.6 percent market share in health insurance sector, the company employs 11,000 people providing insurance coverage to more than one crore lives.