Bupa to raise stake in Max Bupa to 49%

First foreign company to raise stake following amendments in insurance laws

The UK’s Bupa Insurance on Monday said it would raise stake in its Indian health insurance joint venture, Max Bupa, to 49 per cent from the current 26 per cent, becoming the first foreign company to announce a rise in shareholding following amendments to the insurance laws.

“Following the Insurance Laws Amendment Ordinance, 2014, receiving legislative assent in the 2015 Budget session of Parliament, Bupa, the international health care group, proposes to increase its stake in Max Bupa from 26 per cent to 49 per cent,” the private insurer said in a statement. Bupa would submit formal applications to the relevant authorities for the regulatory approvals required to increase its stake, it said. Max Bupa, a standalone private health insurer, is a joint venture between Max India (with 74 per cent stake) and UK-based global health care group Bupa (26 per cent). Launched in 2010, the company has a customer base of two million across India.

Commenting on the decision to increase Bupa’s stake in Max Bupa, David Fletcher, managing director of international development markets at Bupa, said: “This decision underlines Bupa’s commitment to the Indian health insurance market and represents a major milestone in the development of Max Bupa.”

“With our partners, Max India, we are committed to supporting Max Bupa’s growth and helping Indian consumers live healthier and more successful lives,” he said.

Rahul Khosla, managing director, Max India  said Bupa’s intention to increase its stake was a testimony to the huge opportunity for health insurance in India and Max India’s reputation in successfully managing joint ventures.

While Max Bupa is the first insurer to make a concrete announcement of increase in foreign holding, Reliance Capital recently said it was also exploring bringing in a foreign partner with up to 49 per cent stake in its health insurance venture.