Biznextindia : Axis Bank, India’s 3rd largest private bank has signed a definitive agreement with private life insurer Max Financial Services Limited (MFS) to become joint venture partners in Max Life Insurance Company Limited (Max Life).
The Boards of Axis Bank, MFS and Max Life approved the transaction on 27th April 20. Axis Bank will hold 30% stake in Max Life post the transaction closure.
Max Financial Services presently holds a 72.5% stake in Max Life and Mitsui Sumitomo Insurance (MSI) owns 25.5% stake. Axis Bank also has a minor stake in the life insurer.
The transaction with Axis Bank follows the ongoing swapping by MSI of 20.6% stake that it holds in Max Life with a 21.9% stake in MFS. MFS also plans to purchase MSI’s balance stake in Max Life. Post completion of the series of transactions, Max Life will become a 70:30 joint-venture between MFS and Axis Bank. The total premium generated through this relationship has aggregated to over Rs. 38,000 crore.
“…We see this joint venture creating immense value for our stakeholders given our long-standing, high performing partnership with Max Life. We believe this transaction will allow us to deepen our working relationship leading to better-integrated teams and infrastructure and a superior alignment in our approach” said Amitabh Chaudhry, MD and CEO, Axis Bank.