Max India to Exit Health Insurance After Selling its 51% Stake to True North
Updated On Aug 22, 2019
Max India is likely to exit the health insurance space after selling its 51% stake to True North, the popular homegrown private equity major. The private equity firm was leading the race to acquire Max Bupa Health Insurance from a very long time and earlier was also interested in acquiring a stake in Royal Sundaram General Insurance.
For nine months ending 31st December, 2018, Max Bupa’s net loss enhanced to Rs. 54.9 Crore. In comparison, it was Rs. 10 Crore in the period over an year ago. It experienced a 24% rise in the gross premium collection to Rs. 626.78 Crore.
Max-True North deal could be second deal like such. In December 2018, Max India announced a stake sale in its healthcare services joint venture Max Healthcare Institute to Radiant Life Care backed by private equity (PE) firm KKR. The deal comprised Radiant Life's purchase of a 49.7% stake in Max Healthcare from South Africa-based hospital operator Life Healthcare International in an all-cash deal, followed by the demerger of Radiant’s healthcare assets into Max Healthcare.