India-based Axis Bank is considering increasing its stake in Max Life Insurance to about 20%, over the next 6-9 months, reported Press Trust of India (PTI) citing the insurance company’s CEO Prashant Tripathy.
Currently, Axis Bank and its two subsidiaries, Axis Capital and Axis Securities, jointly own a stake of 12.99% in Max Life Insurance.
The stake was acquired as part of a deal closed in 2021 between Axis Bank and Max Life Insurance.
The deal involved option for Axis entities to acquire the remaining stake of up to 7% stake in Max Life Insurance, one or more tranches over the course of the next few years, the private lender said in a regulatory filing at that time.
The right to acquire an additional stake in the insurance company remains subject to approvals.
Tripathy was quoted by PTI as saying in an interview: “The bank currently holds about 13% and we are hopeful that over the next 2-3 quarters they would be able to take it to 20%.”
Tripathy said that the firm’s bancassurance with Axis Bank resulted in a growth of 18-20% over a period of last five years.
Max Life Insurance is also under bancassurance partnerships with Yes Bank and a few other co-operative banks. This allows the insurance firm to sell its products to the bank’s customers through the branch network.
Max Life Insurance is a joint venture (JV) between Axis Bank and Max Financial Services, which is a part of Indian multi-business corporation Max Group.
The insurance firm, through its multi-channel distribution including agency and third-party distribution partners, is engaged in offering comprehensive protection and long-term savings life insurance solutions.