Bupa Group and Max India in joint move to enter the Indian health insurance market

Bupa Group, the leading international health and care company and Max India Limited, a major multi-business corporate in the business of life and care,

have formed a new partnership to enter the health insurance market in India.

The two companies today announced the creation of a joint venture called Max Bupa Health Insurance Limited which, subject to regulatory approval, will offer a suite of products to both consumer and business customers.

The initial share capital of the joint venture will be andpound;12million (Rs100 Crores).

Bupa Group will take a 26 percent stake in Max Bupa, the maximum allowed under current Indian rules on foreign investment in the country.

India has the potential to be one of the largest health insurance markets in the world.

; With over 70 percent of India's healthcare spend being in the private sector, Bupa Group and Max India believe the new joint venture can be grown into a major health insurance business.

Chief executive of Bupa Group, Ray King said: "The Indian health insurance market has massive potential, with a growing, young, population.

We believe that many of its citizens will be looking for the high quality of care and customer service that Max Bupa will be well placed to offer.

"We are pleased that in Max India we have found a partner with sound experience, excellent knowledge of the marketplace, and a set of values which match Bupa's.

"This is an exciting opportunity for both Bupa and Max India .

It also emphasises Bupa's determination to identify, and participate in, new opportunities for health and care provision in international markets." According to forecasts, India's GDP will outstrip both the UK and France within seven years and exceed that of the USA by 2040 - making it second only to China.

While latest figures put the current value of India's health insurance market at US$800million, it is expected to rise to US$8billion by 2015.

India has a young, increasingly urbanised, population.

By 2020 the average age of Indians will be a mere 29, compared to 37 for China and 47 for Western Europe.

The country already boasts 27 cities with populations greater than one million, which is three times the figure for the USA, and its population is predicted to grow to 1.6billion by 2050.

Mr Analjit Singh, Chairman of Max India , said: "Max India has been in dialogue with leading international players for the health insurance business.

Our decision to partner with Bupa was based on the synergies and unique strengths that Bupa brings to this venture.

Bupa has the expertise in creating and delivering differentiated health-insurance products and a proven ability to operate in, and adapt to, international health care markets.

Through Max India, we will capitalise on our knowledge and experience in the Health and Life Insurance sectors.

"I am very excited about this new journey that we are about to embark on and Iandnbsp;am confident that with our expertise in forging successful partnerships and working efficiently and successfully in joint ventures alongside global leaders, this collaboration with Bupa will be a momentous one.".

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