Private equity firm KKR said on Thursday that it has acquired anapproximate 9.95 percent stake in Max Financial Services Ltd that owns 72 percent in Max Life Insurance Company Ltd.
According to a statement issued by KKR, it acquired the stakes from a sponsor group led by Analjit Singh, chairman emeritus of the Max group.
After the group restructuring, Max Financial Services focuses solely on managing the group's life insurance business. The other joint venture partner in Max Life Insurance is Mitsui Sumitomo Insurance Co Ltd of Japan.
KKR made its investment from its Asian Fund II through the portfolio investment route but the statement is silent on the price at which the 9.95 percent stake was acquired.
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.
Welcoming KKR's investment, Singh was quoted as saying: "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."
Sanjay Nayar, CEO of KKR India, was quoted as saying: "We continue to believe in India's growth potential, increase in financial savings and resultant life insurance industry growth. Within the sector we are excited to partner with Analjit Singh and his team at Max Financial Services, a company which is well positioned in the life insurance industry."
