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In one of the largest deals in the TPA sector, Medi Assist Insurance TPA has announced acquiring 100 per cent stake in Raksha Insurance TPA, with the acquisition being funded by internal accruals, the company said in a release.
Completion of the transaction is subject to regulatory approvals and pending customary closing conditions, it said.
Medi Assist is a health insurance focused, technology-powered TPA, which offers medical benefits through a combination of in-person, digital, and virtual services to corporates, retail policyholders and public health schemes.
Retail segment
In FY22, the company generated a revenue of ₹393 crore, while Raksha generated a revenue of ₹67 crore. Raksha TPA ranks sixth in terms of health insurance premiums, and will add 10 per cent to Medi Assist in terms of scale and size and 20 per cent in terms of retail market share.
Through this acquisition, Medi Assist TPA hopes to grow its retail segment by 30 per cent. It will help expand the company’s presence in the North and West India and add around 3,000 corporates to its client list.
Raksha TPA serviced 3.5 million lives in the last financial year, with an operating revenue of around ₹60 crore. It has premiums under management of over ₹1,700 crore.
Medi Assist made its first cross-border acquisition in 2022, of UK-based global service provider ‘Mayfair We Care’ to service policyholders in over 150 countries. In the past, the company has acquired 3-TPA’s in India — Dedicated Healthcare Services TPA (India) in 2016, Medicare Insurance TPA Services in 2018, and Medvantage Insurance TPA in 2022.
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