Axis Bank has Bought 4.99% stake in Max Life Insurance for Rs 95.75 Crore. India’s 3rd largest private lender now owns 5.99% stake in Max life Insurance. Axis Bank bought 3.99% stake from Max Financial Services and 1% stake from Mitsui Sumitomo Insurance Company.
Axis Bank is bancassurance partner to Max Life Insurance for life insurance while Tata AIG is bancassurance partner for general insurance. Max Life is a joint venture between Max India Ltd and Mitsui Sumitomo Insurance. Max Life has paid-up capital of Rs 2115 crore and Rs 31973 crore capital under management.
Max Financial Services owns 68.01% in Max life insurance while Mitsui Sumitomo Insurance Company owns 25%. Presently Insurance sector has become attractive for foreign investors with government permitting foreign direct investment in this sector upto 51%. A number of Indian lenders like SBI and ICICI Bank have an equity tie-up with
global insurance companies in life and general insurance with an agreement to exclusively sell their polices to their customers.