New Delhi:
Axis Bank, India’s third largest private sector bank, together with its subsidiaries Axis Capital Limited and Axis Securities Limited (collectively referred to as “Axis Entities”) have acquired 12.99 per cent stake in Max Life Insurance Company Limited (Max Life),fourth largest domestic private life insurance firm in the country. ,
The Board of Max Life recorded the closure of the deal today.
With the conclusion of this transaction, Max Life’s Board will be strengthened further, with co-option of three nominee directors of Axis Entities on its Board.
The transaction was completed after the Insurance Regulatory and Development Authority of India (IRDAI) gave its formal approval in February this year.
The Axis Entities have a right to acquire an additional stake of up to 7 per cent in Max Life, in one or more tranches, subject to regulatory approvals.
Amitabh Chaudhry, Managing Director & CEO, Axis Bank said: “We are delighted to see the strategic partnership come through. Axis Bank has been a long-term partner to Max Life and together we have contributed to deepening insurance penetration in India over the last decade. We are confident this venture will enhance the value for all the stakeholders of Axis Bank and Max Life.”
Analjit Singh, Chairman of Max Group and Max Financial Services, said, “The conclusion of this transaction is truly a monumental milestone, which will bring added strength to Max Life and help it chart a new growth trajectory by combining the forces of the third largest private bank in India with the fourth largest private life insurer in the country.
We are again privileged to welcome another sterling name to Max’s history of storied partners. Throughout our decade-long business association, Axis Bank has exhibited value across customer insights, distribution expertise and a myriad of functional benefits which will be of great benefit to our business.”
Subrat Mohanty, Group Executive, Banking Operations & Transformation, Axis Bank, said, “We have a long-term commitment to build a strong insurance distribution platform for our customers. This deal is an affirmation of that commitment. Max Life is a well-managed professional organization with a stellar track record. We are excited to enter into this new phase in our partnership with them.”
Prashant Tripathy, Managing Director & CEO, Max Life Insurance, added, “This closure marks a new phase of growth and stability for Max Life. The JV enhances our brand in the eyes of our customers, business partners and investors by integrating the resources and benefits that the two players bring. ”
Cyril AmarchandMangaldas acted as the legal counsel for the deal.
Axis Bank has shared a successful business relationship with Max Life for over a decade, providing long-term saving and protection products to nearly 20 lakh customers. The total premium generated through this alliance has aggregated to over Rs. 40,000 crores. Both companies have invested extensively in product and need-based sales training, thereby leading to a consistent increase in productivity.