Warburg Pincus to sell 26% stake in IndiaFirst Life Insurance to BNP Paribas Cardif

Mumbai: Promoter Warburg Pincus has entered into a definitive agreement to sell its 26% stake in IndiaFirst Life Insurance to BNP Paribas Cardif, which is set to re-enter the Indian insurance market that it had exited after ending a partnership with State Bank of India in 2019.

Warburg Pincus held the 26% stake in the life insurer through its private equity fund Carmel Point Investments India Pvt. Ltd. Following the transaction, BNP Paribas will become the second biggest shareholder in the company after Bank of Baroda, which holds 65% stake. Union Bank of India holds the remaining 9% share in the insurance company.

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Established in 2009, Mumbai-based IndiaFirst Life Insurance offers protection, savings, and retirement solutions across more than 90% of India’s pin codes through a multi-channel distribution network. Its initial shareholders were Bank of Baroda, Andhra Bank (now part of Union Bank of India), and Legal & General Middle East Ltd. Private equity firm Warburg Pincus LLC had acquired UK’s Legal & General stake in the insurance company in February 2019.

Combining strengths

The investment aims to combine IndiaFirst Life’s multi-channel distribution strength and BNP Paribas Cardif’s global bancassurance expertise, product innovation and insurance capabilities to accelerate the next phase of growth, the entities said in a joint release.

“Their (BNP Paribas’) partnership, product innovation, and operations complement our distribution strengths and digital execution capabilities,” said Rushabh Gandhi, managing director and chief executive officer of IndiaFirst Life. The collaboration will help the insurer offer solutions at scale and support sustainable and profitable growth, he added.

Incidentally, IndiaFirst Life Insurance had filed draft papers with Sebi for an IPO in October 2022 and received the regulators nod in March 2023. But the plans did not proceed.

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Mint, had on 29 December, 2025 reported that IndiaFirst Life has drawn interest from Samsung Life Insurance, Prudential Plc, BNP Paribas, and Norwest Venture Partners as existing investor Warburg Pincus explores an exit. Reports later suggested that BNP Paribas has emerged as the front runner for the proposed acquisition.

The insurer had earlier planned to go public in 2022 and had received approval from the Securities and Exchange Board of India the following year, but deferred the listing amid volatile market conditions. People in the know had then told Mint that the IPO process will happen only after Warburg Pincus’ exit and that the sale will help determine with insurer’s valuation ahead of the public listing.
As of March 2025, the insurer had a paid-up share capital of ₹754.37 crore, whereas assets under management stood at ₹30,968 crore. In FY25, its gross direct premium grew marginally to ₹7,218 crore from ₹6,974 crore a year earlier, while profit declined to ₹102 crore from ₹112 crore in FY24.

Furthering international growth

For BNP Paribas Cardif, the transaction marks a further step in its international growth and diversification strategy, while strengthening its presence in Asia, particularly in India, which is a strategic market offering compelling long-term growth opportunities, the release said.

The new partnership with Bank of Baroda, a major bank in India, will further drive BNP Cardif’s international growth strategy of partnering with strong institutions in high-potential markets, chief executive officer Pauline Leclerc-Glorieux was quoted as saying in the release.

BNP Paribas Cardif, a subsidiary of French BNP Paribas, is a world leader in bancassurance partnerships, and has over 500 partner distributors across banks, financial institutions, automotive companies, retailers and telecommunications companies. It has a presence in 30 countries, 9,000 employees worldwide and strong positions in Europe, Asia and Latin America.

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BNP Paribas Cardif ended its two-decade old joint venture with State Bank of India through a phased exit from SBI Life Insurance by selling 9% stake sale to Carlyle Group and other public offerings starting in 2019. Eventually, both BNP Paribas and the Carlyle Group–through its subsidiary CA Emerald Investments– exited the insurance company in 2021. Currently, the life insurer is promoted by the SBI Group which holds 55.32% stake.

The proposed acquisition of stake in IndiaFirst Life marks the foreign investor’s re-entry into the insurance market. The deal is subject to regulatory and other approvals.

“With BNP Paribas Cardif joining us as a partner, we are extending a relationship that has already proven successful through our joint venture in asset management, and we look forward to leveraging their global insurance expertise alongside Bank of Baroda’s extensive distribution franchise and deep local market insights,” said Debadatta Chand, chairman of IndiaFirst Life and managing director and chief executive officer of Bank of Baroda.

Baroda Asset Management India and BNP Paribas Asset Management India merged to form Baroda BNP Paribas Mutual Fund on 14 March 2022. Bank of Baroda holds 50.1% stake in the mutual fund business whereas BNP Paribas holds the remaining 49.9% share.