New Delhi-based Max Life Insurance is looking at the completion of a Rs 1,612-crore capital infusion of by Axis Bank into the company in the next three months, Managing Director and Chief Executive Officer Prashant Tripathy said in an interaction with Moneycontrol on February 14.
"Insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) has given the green light for this infusion, only CCI (Competition Commission Of India) approval is pending, which we are expecting in the next three months," Tripathy said.
The Axis Bank board on August 9 gave its nod to the Rs 1,612-crore infusion in Max Life Insurance Company Limited, a material subsidiary of Max Financial Services Limited. The bank said the Acquisitions, Divestments, and Merger Committee has approved the proposal for the infusion through preferential allotment.
The proposed acquisition, the bank said, would strengthen its position in the life insurance business. After completion of this acquisition, it will increase the total holding of the bank (along with its subsidiaries e.g. Axis Securities Ltd. and Axis Capital Ltd) in Max Life from 12.99 percent to 19.02 percent, Axis Bank informed stock exchanges.
For this transaction, Max Life Insurance proposes to issue 14.25 crore shares to Axis Bank, which will take the latter’s shareholding in the life insurer to 19 percent from 13 percent. Axis Bank proposes to acquire an additional 6 percent stake in Max Life Insurance at Rs 113 per share.
Tripathy added that for the last quarter, Q3FY24, Max Life was growing more than 50 percent year-to-date (YTD). "More than 50 percent in e-commerce we're expanding this year, we have also focused on building our credit protect business, which is growing at 56 percent, year-on-year. Our health and protection which is growing at 64 percent. We are gaining market share and the objective will be to continue this momentum going forward, " he added.
Max Life Insurance Company, incorporated on July 11, 2000, recorded a turnover of Rs 25,342 crore, Rs 22,414 crore, and Rs 19,018 crore in FY23, FY22 and FY21, respectively.
"Our own agency is present in close to about 230, 240 cities. But we are present through our bank partners – our promoter axis bank, they are present everywhere," he added.
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