Bain Capital is in advanced talks to acquire as much as a 25% stake in IndusInd General Insurance (IGI) in a deal that could value the insurer at more than Rs160bn ($1.67bn), the Economic Times reported, citing sources.
The transaction, if completed, would be Bain Capital’s first direct investment in India’s general insurance sector.
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The stake is being sold by Hinduja Group’s Mauritius-based investment arm IndusInd International Holdings (IIHL).
Bain is expected to commit between Rs40bn and Rs50bn, implying a valuation of 1.3–1.7-times the company’s gross written premium (GWP) of around Rs120bn.
IGI operates in retail, commercial and crop insurance, and over the past year has been concentrating on expanding its health and fire businesses.
The report said that Bain has finished financial, legal and operational due diligence, and the agreement is expected to be signed by late August or early September.
“They are not looking at exiting in two or three years. They see significant operational upside in the franchise,” one person involved in the discussions told the publication.
Barclays is acting as adviser to IIHL on the proposed sale.
IGI is expected to be priced at a discount to listed peers, which are valued at approximately three-times GWP, reflecting a requirement for operational improvements.
The insurer posted a 2.5% fall in GWP to Rs122.36bn in fiscal year 2026, while the overall general insurance industry recorded 9% growth.
In March 2026, IGI raised Rs4.5bn, made up of Rs3bn in subordinated debt and a Rs1.5bn capital injection from its parent, to reinforce its solvency position, which is above 1.6 times.
Through Reliance Capital, IIHL currently owns 73.98% of IGI, while Aasia Enterprises holds 24.67%. The rest is owned by employees and others.
IIHL acquired Reliance Capital through the insolvency resolution process in March 2025 under a resolution plan of Rs96.5bn.
That transaction brought Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction and other financial services businesses into its portfolio.
