Bupa and multi-business corporate Max India Ltd have 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.
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."