UK’s Bupa Insurance will increase its stake in health insurance venture Max Bupa from 26 per cent to 49 per cent after the Insurance laws Amendment Ordinance 2014 received legislative assent in the 2015 Budget Session of Parliament.
Bupa has become the first foreign company to announce a hike in shareholding after amendments to the insurance laws. The company will submit formal applications to the relevant authorities for the regulatory approvals required in order to increase its stake. Through an Ordinance, the Government has permitted foreign investment of up to 49 per cent in the insurance sector, from a limit of 26 per cent previously.
“Following the Insurance laws Amendment Ordinance 2014 receiving legislative assent in the 2015 Budget Session of Parliament, Bupa, the international healthcare 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 will submit formal applications to the relevant authorities for the regulatory approvals required in order to increase its stake, it said. Max Bupa, standalone private health insurer, is a joint venture between Max India (with 74 per cent stake) and UK-based global healthcare 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. Max India Managing Director Rahul Khosla said Bupa’s intention to increase its stake is 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 to 49 per cent, Reliance Capital recently said it is also exploring bringing in a foreign partner with up to 49 per cent stake in its health insurance venture.
As a leading international healthcare group, Bupa offers health insurance and other health funding products, and runs care homes, retirement villages, hospitals, diagnostic and primary care centres and dental clinics. Bupa also provides workplace health services, home healthcare, health assessments and long-term condition management services.
Bupa has over 22 million customers in 190 countries and territories. With no shareholders, it invests its profits to provide more and better healthcare and fulfill its purpose: longer, healthier, happier lives. Bupa employs more than 70,000 people, principally in the UK, Australia, Spain, Poland, New Zealand and Chile, as well as Saudi Arabia, Hong Kong, India, Thailand and the USA.
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 per cent stake in the company.