Bupa completes share purchase from partner Max India to increase its stake in Indian health insurer Max Bupa to 49%

13 June 2016 . India

International healthcare group Bupa and leading multi-business corporate, Max India Ltd., today announced the completion of the transaction to increase Bupa’s shareholding in their health insurance joint venture Max Bupa from 26% to 49%.
The application to increase Bupa’s shareholding was submitted following changes to India’s foreign direct investment (FDI) rules to allow up to 49% ownership of insurance companies by foreign investors. Bupa is one of the first foreign investors in India’s health insurance sector to have its application to increase its shareholding approved by Indian regulatory authorities and complete the transaction with its joint venture partner. Bupa has paid Rs 207 cr (approximately GBP £21.9m) to Max India, in an all cash transaction, for the stake increase.

The transaction was concluded after receiving regulatory clearances from the Insurance Regulatory and Development Authority of India (IRDAI).

Launched in 2010, Max Bupa is already the 7th largest private health insurer in India. With a base of more than two million customers across India, it continues to be amongst the fastest growing stand-alone health insurers. The company has focused on building a retail customer and product portfolio via multiple sales channels including agency, bancassurance, telesales and online.

David Fletcher, Managing Director of International Development Markets at Bupa said: "We are pleased to have completed the transaction with our partners Max India to increase our shareholding in Max Bupa to 49%. Bupa’s commitment to the Indian health insurance market is strong, demonstrated by the speed we have moved to increase our shareholding. We are excited about continuing to 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.” 

Rahul Khosla, President, Max Group and Chairman, Max India, said, “Bupa’s stake increase is a clear affirmation of the huge growth opportunity for health insurance in India. The proceedings received from the transaction will support the growth aspirations of Max India as well as Max Bupa. This increase in commitment by Bupa, coupled with the recent strategic reorientation of Max India, will strengthen Max Bupa’s position as an innovative leader in its field while setting new benchmarks in customer experience.”

Max India Limited

Notes to editor

For further information or images please contact:

Sirina Parr, Corporate communications, +44 (0) 7877 956 822 /  sirina.parr@bupa.com

About Max India

Max India Group is a leading Indian multi-business corporate with a commanding presence in the Life Insurance, Healthcare and Health insurance sectors. In the financial year 2014, the Group recorded a consolidated turnover of Rs 117 billion. It has a total customer base of over 7.5 million, nearly 300 offices spread across India and people strength of around 17,000 as on 31st March 2014. Max India Limited is a widely held company, listed on the BSE and the NSE. Its founder sponsor Analjit Singh holds 40.5% stake in the company. Other shareholders include some of world’s best Institutional Investors such as Goldman Sachs, Temasek, IFC (Washington), Fidelity and New York Life.

About Bupa

Bupa's purpose is helping people live longer, healthier, happier lives and making a better world.

We are an international healthcare company serving over 31 million customers worldwide. With no shareholders, we reinvest profits into providing more and better healthcare for the benefit of current and future customers.

We directly employ around 85,000 people, principally in the UK, Australia, Spain, Chile, Poland, New Zealand, Hong Kong SAR, Turkey, Brazil, Mexico, the US, Middle East and Ireland. We also have associate businesses in Saudi Arabia and India.

For more information, visit www.bupa.com.