Axis Bank and its subsidiaries, Axis Capital Limited and Axis Securities Limited (together Axis Entities), have completed acquisition of 12.99 per cent stake in Max Life Insurance Company Ltd.
With this acquisition, Axis Entities have become co-promoters of the life insurance company, the companies said in a release. The board of Max Life recorded the closure of the deal on Tuesday.
"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. With the conclusion of this transaction, Max Life's Board will be strengthened further, with cooption of three nominee directors of Axis Entities on its board," it said.
Max Financial Services Limited, the holding company of Max Life, and Axis Bank had first announced their intent to bring in the latter as a strategic partner in Max Life in February 2020. The Insurance Regulatory and Development Authority of India (IRDAI) gave its formal approval for the transaction in February this year.
"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," Analjit Singh, chairman of Max Group and Max Financial Services, said.
Axis Bank MD and CEO Amitabh Chaudhry said that with the conclusion of the transaction, the bank now has the opportunity to shape the future of the insurance industry through continued leadership in products, technology, and customer centricity.
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 release said, adding that the total premium generated through this alliance has aggregated to over Rs 40,000 crore.
Max Life's asset under management grew 23 per cent year-on-year and stood at Rs 84,724 crore as on December 31, 2020.