US-based New York Life
on Thursday announced its exit from Indian life insurance business venture - Max New York Life
- by selling its 26 per cent stake at Rs 2,731 crore to Mitsui Sumitomo Insurance of Japan, a deal dubbed as the second largest in insurance sector.
In an all-cash transaction, Mitsui Sumitomo Insurance (MSI), a unit of MS&AD Group of Japan, will pay Rs 2,731 crore for the stake in Max New York Life (MNYL) subject to regulatory approvals.
"The transaction values Max New York Life at Rs 10,504 crore ($2.1 billion). The consideration offered by MS&AD reflects the strong confidence in the company and its superior performance," Max India Chairman Analjit Singh
This is the second largest deal in the Indian insurance sector after Reliance Life sold its 26 per cent stake to another Japanese insurer Nippon Life at about Rs 3,062 crore last year.
As per existing regulation, a foreign partner can hold only up to 26 per cent stake in an insurance joint venture.