India’s private sector lender Axis Bank is reportedly in talks to purchase more than 20% stake in Max Life Insurance.

The bank plans to acquire the insurer through an issuance of new equity shares, the Economic Times reported citing undisclosed sources.

Max Financial Services currently owns a 72.5% interest in Max Life, while Mitsui Sumitomo Insurance and Axis Bank own 25.5% and 2% stake, respectively.

Axis Bank distributes a number of insurance plans of Max Life under a bancassurance pact, which accounts for approximately 54% of Max Life’s revenue.

The latest deal, as per the publication, is aimed at bolstering the strategic and long-term partnership with Axis Bank.

The deal, the sources said, will eliminate the uncertainty about a bancassurance partner for the insurance company.

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The Economic Times report added that Axis Bank may invest more than ₹20bn ($279m) to help Max Life fund its expansion plan.

Driven by a 24.5% surge in first-year premiums, Max Life insurance business saw a 14.6% year-on-year increase in gross written premiums in the fiscal year 2019, the report added.

The deal, however, is subject to receipt of approval from the board of directors of both the firms.

Founded in 2010, Max Life Insurance offers a range of health, pension, and annuity. It offers child, protection, retirement, savings, and growth plans to individuals and to groups.

Last month, Max Life Insurance entered into a strategic partnership with Payback India to drive adoption of life insurance through digital sales.