Axis Bank stake in Max Life likely to rise to 20 pc in 12-18 months

Axis Bank stake in Max Life is likely to rise.

Insurance CEO Prashant Tripathi said that as part of the proposed transaction, Axis Bank may increase its stake in Max Life Insurance to around 20% in the next 12 to 18 months. 

Axis Capital Ltd and Axis Securities Ltd jointly own 12.99% of Max Life Insurance after the transaction was approved in April this year. Axis Bank stake in Max Life likely to rise to 20 pc in 12-18 months

The Axis organization with three board seats became the co-organizer of Max Life. “Increase to 19.99% in batches.  In the next two quarters, 13% has been achieved, and we will promote a 7% balance. So about 20% will come and they will belong to Axis Bank” Tripathi told PTI. 

When asked about the timetable for completing the remaining equity transfer, he said: “This should be completed within the next 12-18 months”.  

According to the agreement, the hub company also has the right to acquire 7% of Max life in one or more transactions. , But subject to regulatory approval.

According to the agreement, the hub company also has the right to acquire up to 7% of the additional shares of Max Life in batches or multiple batches subject to regulatory approval.

Axis Bank is the name of the joint venture partner. So no changes will be made to the tagline. Speaking of synergies: “We are developing new strategies for future growth. We are working together as a team to ensure that Max Insurance’s life policy is growing faster than the industry. We are analysing the product portfolio together to drive growth. Axis Channel The result is beneficial to both the customer and the company”. 

In addition, he said that we are working in the field of analysis to take advantage of the capabilities of each of them. 

He said that the company released 14 products or product variants last year and in 2020-2021, the profit margin increased by 3.60%. 

In the fiscal year ending March 2021, Max Life Insurance’s total premiums for new businesses (individuals and groups) increased by 22% to 68,26 billion rupees. 

The insurance company’s revenue increased by 15% to INR 12,192 crore and gross premiums reached INR 19,018 crore. An increase of 18% from a year ago.

In terms of personal APE (adjusted premium equivalent), the company increased by 19% to Rs 4,907 crore. Max Life’s after-tax shareholder income fell 6% to 523 billion rupees in 2020-2021 from the previous year’s 539 billion rupees.

NEED A LOAN?

I have read the Privacy Policy & Agree to Terms & Conditions and authorize Dialabank & its partner institutions to Call or SMS me with reference to my application.


Latest News

Menu