General Insurance - Private Transactions’ Valuations Remain At Premiums: ICICI Securities

ICICI Securities Report

We enlist some transactions from non-life insurance space over the past five-six years. Notable implications include:

1. Private transactions have happened at a premium to listed valuations. This could be driven by the control premium (like acquirers could get a Board representation) usually available in private deals.

2. Valuation multiples of these deals have increased over the time period.

This is despite the slowdown in insurance premiums in FY21/22 (5.2%/11%) and the possible risk of composite licenses indicating investor comfort around long time growth potential of the sector.

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