Mumbai, Apr 28 : Private sector lender, Axis Bank Limited has signed an agreement with Max Financial Services Limited (MFS) to become joint venture partners in Max Life Insurance Company Limited (Max Life). The joint venture arrangement will significantly improve Max Life's competitive position vis a vis its competitors, including the other large bank-owned private life insurers.
Bank will hold 30 pc stake in Max Life post transaction closure. The Boards of Axis Bank, MFS and Max Life approved the transaction on Monday. This is an outcome of the inter-se discussions after the three companies had signed a confidentiality and exclusivity arrangement on Feb 20 to explore the possibility of a long-term strategic partnership between Axis Bank and Max Life. Max Financial Services presently holds a 72.5 pc stake in Max Life and Mitsui Sumitomo Insurance (MSI) owns 25.5 pc stake. Axis Bank also has a minor stake in the life insurer.
Max Life will become a 70:30 joint-venture between MFS and Axis Bank. The proposed transactions are subject to the approval of requisite corporate and regulatory authorities (including IRDAI, RBI and CCI). Announcing the transaction, Mr Amitabh Chaudhry, MD and CEO, Axis Bank, said, "We continue to believe in the long term prospects of India's under-penetrated life insurance space, current environment notwithstanding. We see this joint venture creating immense value for our stakeholders given our long-standing, high performing partnership with Max Life. (UNI)