Max Financial Services is the newly demerged entity of the Max Group that owns an approximate 72 per cent stake in Max Life, country's fourth-largest private life insurance player.
KKR acquired stake from a sponsor group led by Analjit Singh, Chairman Emeritus of Max Group, it said in a statement.
The investment was made from KKR's Asian Fund II through the portfolio investment route, it added. However, further details of the transaction were not disclosed.
JM Financial executed the deal on behalf of both parties.
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"KKR has been a long-standing, value-added partner to Max Group across various business initiatives. The extension of our partnership couldn't have happened at a more opportune time than now, following the listing of Max Financial Services which creates an unparalleled platform to invest in the Indian life insurance space," Singh said.
The partnership between KKR and Max Financial Services comes as the Indian life insurance sector steadily recovers from a recent slowdown and is poised for robust growth, the statement said.
Earlier, Japan's Nippon Life Insurance agreed to increase stake in Reliance Life Insurance (RLIC) to 49 per cent for Rs 2,265 crore. Besides, Canada's Sun Life's had decided to raise stake in Birla Sun Life Insurance to 49 per cent, while Singapore's Temasek picked share in ICICI bank's life unit.
"India's increasing workforce, a rise in the country's median age and favourable savings trends are all expected to drive insurance growth," it said.