New York Life may exit from Indian JV

US-based insurer New York Life may exit from Max New York Life Insurance as it has started scouting for investor to offload its stake in the Indian joint venture.

New York Life has 26 per cent stake in the Max New York Life Insurance and the remaining is held by the Indian partner. The joint venture with Delhi-based Max India was formed in 2000.

The US-based JV partner wants to focus more on home market and exit from Asian market, sources said.

As part of the strategy, New York Life divested its stake from Thailand and Hong Kong operations last year.

When contacted Max India said, "As a high performing organisation, it is inevitable that periodically interest is shown by potential investors to participate in the company's future growth. Currently, there is no development to report".

Max New York Life is a high performing, profitable organisation built on strong fundamentals, Max India spokesperson said.

The company is fully committed to serving the best interest of its customers through market leading products and services.

"We are confident that the company will continue to grow its business and strengthen its leadership position in the Indian life insurance sector," he added.

In an email query, New York Life spokesperson said the company does not comment on rumours.

"Our joint venture is a highly successful operation that provides important insurance products to the people of India.

We do not comment on rumors," New York Life spokesperson William Werfelman said.

Max New York Life, which started operation in the year insurance was opened for the private sector, is a 74:26 joint venture between Max India and New York Life.

Max New York Life has been outperforming the private life insurer space. It is a profitable company today with a profit of Rs 339 crore for nine months ended December 31, 2011, the company said in a statement.

It has been consistently gaining market share and currently the largest non-bank led private life insurer, it said.

As of November 2011, the paid capital of the insurance joint venture stood at Rs 1,976 crore. With sum assured of Rs 1,50,292 crore has Rs 15,094 crore asset under management.

Besides, the company has so far sold more than 5.8 million policies through 31,748 agents.