The Germany-based Munich Health is considering raising its stake in Indian joint venture, Apollo Munich Health Insurance, from the current 26 per cent.
The promoters of Apollo Munich are in talks on raising the foreign stake in the JV, a top official of Apollo Munich Health Insurance said.
Apollo Munich Health Insurance is a joint venture between Apollo Hospitals Group and Munich Health.
However, the official did not divulge information on if the foreign partner will raise the stake to the maximum permissible limit of 49 per cent in the JV.
Recently, a number of foreign players have announced to increase their stake in Indian joint-ventures in insurance sector to 49 per cent from 26 per cent.
Foreign companies such as Nippon in Reliance Life Insurance, AXA in Bharti AXA Life Insurance, Bupa in Max BUPA health insurance and Sunlife Financial Inc in Birla Sunlife have announced to raise their stake in the Indian insurance companies.
The hike in foreign shareholding follows Parliament's approval earlier this year to increase foreign direct investment in private insurance companies to 49 per cent from 26 per cent.
An increased foreign stake in Indian insurance sector is expected to attract more capital and help deepen the insurance penetration in the country.
As per government data, insurance penetration in India as of 2013, stood at 3.9 per cent which was below the world average of 6.3 per cent.
