Bupa plans to increase its stake in its joint venture with Max India to become one of the first companies in India to benefit from the proposed increased limit for foreign direct investment in insurance.
Following the Insurance Laws Amendment Ordinance 2014 receiving legislative assent in the 2015 Budget Session of Parliament, Bupa proposes to increase its stake in Max Bupa from 26% to 49%.
Bupa will submit formal applications to the relevant authorities for the regulatory approvals required in order to increase its stake.
Max Bupa, is a joint venture between Max India, one of India's leading multi business corporates, which owns 74% of Max Bupa, and Bupa, the UK-headquartered global healthcare group, which owns 26%.
Launched in 2010, Max Bupa is the 7th largest private health insurer in India with 2m customers.
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."
The application to increase Bupa's shareholding in Max Bupa will be subject to successful completion of the law-making process as well as all relevant regulatory and legal approvals.
