US-based life insurance giant, New York Life, plans to increase its stake in Max New York Life, once the insurance sector FDI norms are liberalised, a top company official said.
"We will certainly look at increasing our stake in Max New York Life Insurance, as and when the bill for increasing FDI to 49% from (the present) 26% is approved.
We will be more than happy to do so," New York Life's Chief Investment Officer and Vice Chairman of the Board, Gary Wendlandt, told reporters here.
Max New York life Insurance is a joint venture between India's Max India and New York Life. Presently, Max India holds a 74% stake in Max New York Life Insurance while the balance is held by New York Life.
"We have to look at situations and then we will take a call on that," he said. The Union Cabinet last month approved a Bill for hiking the FDI limit to 49% from the current 26%. The Bill will be introduced in Parliament in December.
"Based on an agreement between Max India and New York Life, the latter has an option to buy an additional 24% stake and increase its shareholding in Max New York Life Insurance if the regulator permits," Max India's Director (Corporate Support), Kirti Madhok Sud, said.
"New York Life has this option for a period of eight years and priced on a fair market value-based formula less discount of 10 per cent," she said.
New York Life Insurance, a Fortune 100 company, is the largest mutual life insurance company with around $ 280- bn in assets under management.
Top Section
Explore Business Standard