 "Max India to sell 23% stake in Max Bupa for Rs 191 crore")
Max India said on Monday it would sell 23 per cent stake in its health insurance company Max Bupa to its foreign partner Bupa for Rs 191 crore. This values the standalone health insurer at Rs 830.4 crore. After this transaction, Bupa will raise its stake to 49 per cent from 26 per cent that it holds at present.
Launched in 2010, Max Bupa is a joint venture between Max India Limited, a multi-business corporate with expertise in life insurance and health care, and UK-headquartered global healthcare group Bupa.
After the government eased foreign direct investment (FDI) rules and allowed foreign joint venture partners to hold 49 per cent stake in Indian insurers, against 26 per cent stake permitted earlier, Bupa was the first foreign insurer to announce its intent to increase its stake to 49 per cent.
The company said in a statement that since the announcement in January 2015, Bupa and Max India have been working to align their joint venture agreements with the Insurance Laws (Amendment) Bill 2015 for Indian-owned and controlled businesses.
The new agreements will come into force after the requisite regulatory clearances have been secured from the Foreign Investment Promotion Board (FIPB) and the Insurance Regulatory and Development Authority of India (Irdai).
According to its public disclosures, Max Bupa posted a drop in its loss before tax to Rs 17.89 crore for the quarter-ended September 30, 2015 from a loss before tax of Rs 20.68 crore posted in the same quarter in the previous financial year.
The company's net earned premium stood at Rs 183.82 crore for the April 1-September 30 period of FY16, compared to Rs 152.96 crore collected in the same period in the previous financial year.
David Fletcher, managing director of international development markets at Bupa, said: "We see enormous opportunity in India to build on the great foundations of the past few years and use our global expertise to take the business to the next level."
In the insurance space, apart from Bupa, Max India, too, has partnership with Japan's Mitsui Sumitomo for its life Insurance business (Max Life Insurance).
Launched in 2010, Max Bupa is a joint venture between Max India Limited, a multi-business corporate with expertise in life insurance and health care, and UK-headquartered global healthcare group Bupa.
After the government eased foreign direct investment (FDI) rules and allowed foreign joint venture partners to hold 49 per cent stake in Indian insurers, against 26 per cent stake permitted earlier, Bupa was the first foreign insurer to announce its intent to increase its stake to 49 per cent.
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Rahul Khosla, managing director of Max India, said Bupa's stake increase is a clear affirmation of the huge growth opportunity for health insurance in India. "The cash received from the transaction will support growth aspirations of the Max Group as well as for Max Bupa."
The company said in a statement that since the announcement in January 2015, Bupa and Max India have been working to align their joint venture agreements with the Insurance Laws (Amendment) Bill 2015 for Indian-owned and controlled businesses.
The new agreements will come into force after the requisite regulatory clearances have been secured from the Foreign Investment Promotion Board (FIPB) and the Insurance Regulatory and Development Authority of India (Irdai).
According to its public disclosures, Max Bupa posted a drop in its loss before tax to Rs 17.89 crore for the quarter-ended September 30, 2015 from a loss before tax of Rs 20.68 crore posted in the same quarter in the previous financial year.
The company's net earned premium stood at Rs 183.82 crore for the April 1-September 30 period of FY16, compared to Rs 152.96 crore collected in the same period in the previous financial year.
David Fletcher, managing director of international development markets at Bupa, said: "We see enormous opportunity in India to build on the great foundations of the past few years and use our global expertise to take the business to the next level."
In the insurance space, apart from Bupa, Max India, too, has partnership with Japan's Mitsui Sumitomo for its life Insurance business (Max Life Insurance).