Axis Bank on Tuesday said it has signed an agreement to acquire an additional 29 per cent stake in Max Life Insurance for close to Rs 1,600 crore, taking the private lender’s total stake in the insurer to 30 per cent. Max Financial Services presently holds a 72.5 per cent stake in Max Life, while Mitsui Sumitomo Insurance (MSI) owns 25.5 per cent stake.
Currently, Axis Bank has a minor stake in the life insurer. Post completion of the series of transactions, Max Life will become a 70:30 joint venture between Max Financial Services and Axis Bank.
Amitabh Chaudhry, MD and CEO, Axis Bank, said, “We see this joint venture creating immense value for our stakeholders given our long-standing, high performing partnership with Max Life.”
Max Life is the fourth largest private life insurance company with gross premium income of Rs 14,575 crore and a claims paid ratio of 98.74 per cent in FY19.
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