Max India has received a nod from IRDA to sell 4% of its equity shares
Mumbai: IRDA has allowed Max New York life insurance to issue up to 4% of its equity shares to its bancassurance partner Axis bank. With this move Max India would reduce their stake in the company. The company did not disclose the deal valued but according to market sources, it is estimated to be around Rs. 75 - Rs. 85 crores.
Max India holds 74% in this private life insurance collaboration, while US-based New York Life holds the remaining 26%. “Max New York Life Insurance has received IRDA approval for issue of up to 4% of its equity shares to Axis Bank,” said an official spokesperson of Max New York Life insurance. The insurer has a 10 year bancassurance agreement with Axis bank.
Max New York life has tie ups under bancassurance with nearly 20 small and big banks. The company might look to dilute more stakes in future.
Max New York Life’s net profit at the end of the financial year on March, 31 rose 12 times at Rs. 283 crore over the previous fiscal while gross premium increased by 20% to Rs. 5,812 crore. The company’s AUM has increased by 37% to Rs 13,836 crore.