Munich Re increases stake in Apollo Munich Health Insurance

Re/insurer Munich Re will acquire 23.27 percent of the shares of Apollo Munich Health Insurance from its joint venture partner, the Apollo Hospitals Group, India – increasing its stake from 25.5 percent to 48.75 percent.

Representatives of both companies signed a share purchase agreement, settling on a purchase price of INR 163.5cr (€22.3 million).

With the share acquisition, Munich Re will strengthen the presence of its Munich Health field of business in India – one of its key markets – and continue to pursue its profitable growth strategy.

Apollo Munich Health Insurance, one of the largest private sector health insurance companies, offers comprehensive health insurance plans for individuals, families, senior citizens and corporates. The company has approximately 8 percent of the retail health insurance market and distributes its products through agents, bancassurance, corporate agents, strategic partners, sales associates and direct channels.

Upon completion of the transaction, the share ownership in Apollo Munich Health Insurance of Munich Re and Apollo Hospitals Group will be 48.75 percent and 51.1 percent respectively, with the balance held by employees. The purchase price refers to a total value of INR 703 cr (€96 million) of the company.

Doris Höpke, member of the Munich Re Board of Management responsible for Munich Health, said: “India’s population structure, increased life expectancy and positive economic development will usher in a steep rise in medium-term healthcare spending. Since its start in 2007, Apollo Munich Health Insurance has shown exceptional, often above-market growth rates.

“With the increased stakeholding, we are strengthening our position for sustainable and profitable growth in this region. Apollo Munich Health Insurance is committed to make quality healthcare easy and accessible.”