OREANDA-NEWS. Max Bupa Health Insurance (Max Bupa) today announced that it is set to become one of the first companies in India to benefit from the proposed increased limit for foreign direct investment (FDI) in insurance. 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% to 49%. Bupa will submit formal applications to the relevant authorities for the regulatory approvals required in order to increase its stake.

Max Bupa, a leading Indian stand-alone private health insurer, 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 already the 7th largest private health insurer in India. With a customer base of two million across India, it continues to be amongst the fastest growing stand-alone health insurers. Max Bupa has focused on building a retail customer and product portfolio via multiple sales channels including agency, bancassurance, telesales and online.

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."

Rahul Khosla, Managing Director, Max India Limited, Bupa's JV partner, welcomed the decision. "Max Bupa has established its brand, developed a wide retail customer base and grown its share in the attractive health insurance market. As Max Bupa prepares itself for its next wave of growth, it will stand to benefit from Bupa's expertise in areas such as under-writing health risks and product innovation. 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."

Max India is one of India's leading multi business corporates with interests in life insurance, healthcare and health insurance. Since its inception almost three decades ago, it has successfully managed several joint venture partnerships. Talking about the recent reforms in India, Mr. Khosla added, "Given that the Government has been in office for just six months, I congratulate the Prime Minister, Mr. Modi and the Finance Minister, Mr. Jaitley for finding a way to drive the passage of such a major sectoral reform. This Government is pro business and has now also shown it means business."

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.