German reinsurer Munich Re said it would buy an additional 23.27 percent stake in India's Apollo Munich Health Insurance Co Ltd from its joint venture partner Apollo Hospitals Group India for 1.64 billion rupees ($24.18 million).
The deal increases Munich Re's holding in Apollo Munich to nearly 48.75 percent, with 51.1 percent held by Apollo Hospitals, and the rest by employees. The move is aimed at increasing the German firm's business in India, which it said is "one of it key markets."
Apollo Munich Health Insurance holds about 8 percent of the retail health insurance market in India, but Munich Re said it was betting on a steep rise in spending on healthcare by Indians in the medium term as the country's economy improves.
The company expects the deal to be completed by the second quarter of 2016.