Bupa to Buy Additional 23% Stake in Niva Bupa for Rs 191 crore

Niva Bupa Health Insurance (Max Bupa), a standalone health insurer, has announced that its foreign parent Bupa has executed agreements to acquire an additional 23 percent stake in the health insurer.

Niva Bupa is a 74:26 joint venture (JV)  between Niva India and Bupa.

“Bupa will pay around Rs 191 crore to Niva India in an all-cash transaction, to increase its stake in Niva Bupa from 26% to 49%,” Niva Bupa Health Insurance said in a statement.

Bupa, it said, has executed agreements to acquire an additional 23% stake in Niva Bupa, one of India’s leading

The UK health care group was the first foreign insurer to announce its intent to increase its stake to 49% in its Indian health insurance subsidiary after the government relaxed Foreign Direct Investment (FDI) participation rules for insurance companies.

“Since that announcement in January 2015, Bupa and Niva India have been working to align their joint venture (JV) agreements with the Insurance Laws (Amendment) Bill 2015 for Indian-owned and controlled businesses,” the statement said.

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).

Launched in 2010, Niva Bupa is the seventh-largest private health insurer in India. It has more than two million customers across India.

Its local parent Niva India is one of India’s leading multi-business corporates and currently owns 74% of Niva Bupa. Its foreign parent Bupa is a UK-headquartered global healthcare group, which holds a 26% stake in the company.

After the deal, Niva India’s stake in the venture will come down to 51%.

Rahul Khosla, Managing Director, Niva India Ltd 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 the growth aspirations of the Niva Group as well as for Niva Bupa. ”

Speaking at the occasion, 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 last few years and use our global expertise to take the business to the next level. We are committed to growing an insurance business that not only provides the best quality healthcare funding but that is at the forefront of helping Indian people to live healthier lives.”

Niva India also has partnerships with Japan’s Mitsui Sumitomo Insurance Co for its Life Insurance business and South Africa- based Life Healthcare for its healthcare business.

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 last few years and use our global expertise to take the business to the next level.

We are committed to growing an insurance business that not only provides the best quality healthcare funding but that is at the forefront of helping Indian people to live healthier lives.”

Launched in 2010, Niva Bupa is already the 7th largest private health insurer in India. This company has a base of more than two million customers across India.

About Niva Bupa Health Insurance

Niva Bupa is a, 74:26, a joint venture between Niva India Limited, a multi-business corporate with expertise in life insurance and health care, and Bupa, a leading international healthcare provider with 65 years of healthcare knowledge. Niva Bupa brings together a combination of Bupa’s health insurance and customer service expertise with Niva India’s understanding and experience of the Indian health and insurance sectors. Niva Bupa offers quality health insurance services through a dedicated team of over 1400 people and its network of 26 offices across 16 cities – Delhi, Mumbai, Hyderabad, Chennai, Bangalore, Pune, Ludhiana, Chandigarh, Jaipur, Surat, Kochi, Kolkata, Patna, Goa, Jodhpur, and Ludhiana. Niva Bupa offers individual and family-oriented health insurance policies for Indians across all age groups.

Niva Bupa has a direct working relationship with a network of over 3500 top-quality hospitals and healthcare providers, with plans to extend its network of hospitals to other parts of the country. Niva Bupa services customers directly without third-party involvement. For more details about the company and a list of all our network hospitals please visit www.nivabupa.com.

About Bupa

As a leading global health and care company, Bupa offers health insurance, medical subscription, and other health and care funding products. Bupa runs care homes, retirement and care villages, primary care, diagnostic and wellness centers, hospitals, and dental clinics. Bupa also provides workplace health services, home healthcare, health assessments, and long-term condition management services.

Bupa has 29 million customers in more than 190 countries. With no shareholders, it invests its profits to provide more and better healthcare and fulfill its purpose: longer, healthier, happier lives.

Bupa employs almost 80,000 people, principally in the UK, Australia, Spain, Poland, New Zealand, and Chile, as well as Saudi Arabia, Hong Kong, India, Thailand, and the USA.

For more information, please visit: www.bupa.com

About Niva India Group

Niva 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 2015, the Group recorded a consolidated turnover of Rs. 14,877 Cr. It has a total customer base of over 7.5 million, nearly 300 offices spread across India, and a people strength of around 17,000 as of 31st March 2015. Niva India Limited is a widely held company, listed on the BSE and the NSE. Its founder sponsor Analjit Singh holds a 40.5% stake in the company. Other shareholders include some of the world’s best Institutional Investors such as Goldman Sachs, Temasek, IFC (Washington), Fidelity, and New York Life.

This article was published on November 24, 2015, at http://www.dnaindia.com/money/report-uk-s-bupa-to-pay-around-rs-191-crore-for-buying-additional-23-stake-in-Niva-bupa-2148392