Star Health & Allied Insurance, the first standalone health insurance company, has formally kicked off a sale process with an asking price tag of US$900 million to US$1 billion. The company is also the largest standalone health insurer in the country that also offers personal accident and travel insurance covers.
Kotak Mahindra Bank and MAPE Advisory are working with the investors and the management of the Chennai-based insurer to find a suitor, reported Times of India. The decade-old Star Health counts ICICI Venture, Sequoia Capital, Tata Capital Growth Fund, Alpha TC Holdings, Apis Partners, Oman Insurance Company and ETA Star of Dubai as its investors.
The current shareholders believe the timing is ripe to cash out as valuation benchmarks in the insurance sector are being established through a slew of IPOs and M&A activities.
Among India’s insurance companies, five are standalone health insurance players. These are Star Health and Allied Insurance, Apollo Munich Health Insurance, Max Bupa Health Insurance, Religare Health Insurance, and Cigna TTK.