Bupa increases stake in Indian health insurance market
Healthcare group Bupa has announced the completion of a transaction with Max India Ltd. to give it increased shareholding in Max Bupa, a shared health insurance venture from the two corporations. Bupa’s share in the company has risen from 26 per cent to 49 per cent.
Changes to India’s foreign direct investment (FDI) rules allowed Bupa to submit an application to increase its shares in Max Bupa. The new rules mean that foreign companies can own up to 49 per cent of insurance companies, and Bupa has been one of the first firms to have its application to increase its shares approved. Max India received ₹2.07 billion in return for the stake increase.
Max Bupa is currently the seventh largest private health insurer in India with a customer base of two million. According to Rahul Fletcher, president of Max Group and chairman of Max India, the stake increase is ‘a clear affirmation of the huge growth opportunity for health insurance in India’.
David Fletcher, managing director of international development markets at Bupa added: “We are pleased to have completed the transaction with our partners Max India to increase our shareholding in Max Bupa to 49 per cent. Bupa’s commitment to the Indian market health insurance market is strong, demonstrated by the speed we have moved to increase our shareholding. We are excited about continuing work with Max India on the growth and development of our joint venture Max Bupa, offering Indian consumers and families high quality, affordable health insurance.”