“We have the opportunity now to shape the future of the industry through continued leadership in products, technology, and customer-centricity”, said Amitabh Chaudhry, Managing Director & CEO, Axis Bank.
Axis Bank has been the bancassurance partner of Max Life for a long time now. Through the bank’s branches and sales networks, Max Life sold long-term saving and protection products to around 2 million customers for a premium income of around Rs 40,000 crore.
have invested extensively in product and need-based sales training, thereby leading to a consistent increase in productivity”, Axis Bank in a release said.
Max Life is the fourth largest private sector life insurance company, with an asset under management of Rs 84, 724 crore. In the last four years (FY 16 –20), its Individual Adjusted New Sales registered a compounded annual growth rate (CAGR) of 18 per cent.
The deal was structured in a way wherein, Axis Bank would acquire 9 per cent stake in the life insurance company while Axis Capital and Axis Securities would acquire another 3 per cent in the company in the first leg of the transaction. Furthermore, Axis entities – Axis Capital & Axis Securities – will have the right to acquire another 7 per cent in the life insurance company, in or more tranches. And, they do intend to acquire more stake in the company in the coming years.
Max Financial Services is the holding company of the private sector life insurer Max Life Insurance.
Max Financial Services swapped its stake for Mitsui Sumitomo’s stake in the life insurance company. The transaction entailed swapping Mitsui Sumitomo's 20.6 per cent stake in Max Life Insurance
with 21.9 per cent stake in MFS, which resulted in MFS holding more than 93 per cent stake in the life insurance company. Before the share swap, MFS held 72.5 per cent stake in Max Life and MSI owned 25.5 per cent stake in the life insurance firm.
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