A significant stake in IndiaFirst Life Insurance Company Ltd. has attracted the attention of major global financial players. Samsung Life Insurance, Prudential Plc, BNP Paribas, and Norwest Venture Partners are currently evaluating a potential purchase of the 26% stake held by private equity firm Warburg Pincus, according to sources familiar with the development.
A Strategic Pre-IPO Move
Insiders describe the potential transaction as a strategic, pre-IPO deal that could establish a valuation benchmark for the insurer ahead of a public listing. The sale process, for which Warburg Pincus has appointed Barclays as an adviser, could value IndiaFirst Life at over ₹10,000 crore. Sources indicate that Warburg may not divest its entire holding if the desired valuation is not met, and the transaction will be purely secondary, with no fresh capital infusion into the company at this stage.
This move comes after the insurer's earlier plans for an initial public offering (IPO) in 2022 were deferred due to volatile market conditions, despite having received approval from the Securities and Exchange Board of India (SEBI). The public listing remains under consideration, with preparations potentially beginning next year, and the listing itself could occur within six to twelve months as the company aims to scale up further.
IndiaFirst's Financial Footprint and Ownership
Founded in 2009, IndiaFirst Life is a joint venture. Its current shareholding pattern includes Bank of Baroda holding a 65% majority stake, Union Bank of India (following the amalgamation of Andhra Bank) owning 9%, and Warburg Pincus holding the remaining 26%. The private equity firm had acquired its stake from Legal & General in February 2019.
For the financial year ending March 2025 (FY25), the insurer reported a marginal growth in gross direct premium to ₹7,218 crore from ₹6,974 crore in FY24. However, its profit saw a decline to ₹102 crore from ₹112 crore in the previous year. Rating agency Icra noted that growth was impacted by recalibration efforts, including structural changes to products. The company's assets under management stood at ₹30,968 crore as of March 2025.
Part of a Broader Trend in Indian Financial Services
This potential stake sale adds to a wave of heightened deal activity within India's financial services sector. Recent notable transactions include Mitsubishi UFJ Financial Group's (MUFG) $4.4 billion investment in Shriram Finance, Mizuho's majority acquisition of Avendus, and Sumitomo Mitsui Banking Corp's stake purchase in Yes Bank.
Other significant deals involve Emirates NBD buying a majority stake in RBL Bank, Blackstone's $705 million purchase of a 9.9% stake in Federal Bank, and a $1 billion investment by Abu Dhabi's IHC in Samman Capital. The interest from a mix of strategic and financial investors in IndiaFirst underscores the continued attractiveness of India's insurance and broader financial market to international capital.
IndiaFirst Life boasts a substantial reach, serving over 16 million customers across more than 90% of India's pin codes. It operates through a vast network of approximately 22,000 partner branches and around 115 third-party distributors.
