 "Axis Bank, Axis")
The board of private sector lender Axis Bank on Wednesday gave approval to increase its stake in Max Life Insurance to 19.99 per cent. The equity stake will be acquired for Rs 336 crore.
Max Life Insurance is a subsidiary of Max Financial Services.
Post the acquisition, the stake of Axis Bank and its subsidiaries, including Axis Securities and Axis Capital, in the life insurer will increase to 19.99 per cent from the existing 19.02 per cent.
“The board of directors of the bank, at its meeting held on June 19, 2024, has approved a proposal for the acquisition of additional equity shares of Max Life by the bank for an amount of up to Rs 336 crore, thereby increasing the aggregate shareholding of the Axis entities from 19.02 per cent to 19.99 per cent,” the lender informed the exchanges.
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The transaction is expected to be completed in 2-3 months, subject to regulatory approvals.
“In continuation of the existing investment, this acquisition would strengthen the bank’s position in the life insurance business,” the exchange filing said.
On August 9, 2023, the board of Axis Bank approved the proposal to infuse Rs 1,612 crore in Max Life, resulting in Axis Bank’s direct stake in Max Life increasing to 16.22 per cent and the collective stake of Axis entities increasing to 19.02 per cent.
In 2021, Axis Bank announced the deal for the acquisition of a stake in Max Life Insurance.
In FY24, the gross written premium of Max Life Insurance increased by 17 per cent year-on-year (Y-o-Y) to Rs 29,529 crore. The profitability margin measured as Value of New Business (VNB) Margin was 26.5 per cent in FY24 as compared to 28.6 per cent last year.
