Mumbai (Maharashtra) [India], Feb 20 (ANI): Private sector lender Axis Bank, Max Financial Services and its subsidiary Max Life Insurance Company on Thursday signed a confidentiality and exclusivity arrangement to explore the possibility of Axis Bank entering into a long-term strategic partnership with Max Life.
Max Life is currently the largest non-bank owned private life insurer in India. Max Financial Services holds a 72.5 per cent stake in Max Life while Mitsui Sumitomo Insurance and Axis Bank hold 25.5 per cent and 2 per cent stake respectively.
Axis Bank and Max Life have had a successful bancassurance (banca) arrangement for nearly a decade. The new premium generated through this banca arrangement has aggregated to over Rs 12,000 crore over this period while maintaining high persistency.
Both companies have invested extensively in product and need-based sales training, thereby leading to a consistent increase in productivity.
"We constantly keep assessing various strategic opportunities and see a potential for greater participation in the under-penetrated life insurance space," said Amitabh Chaudhry, Managing Director and CEO of Axis Bank.
"The successful completion of proposed transaction is expected to create significant value for all stakeholders," he said.
Analjit Singh, Founder and Chairman of Max Group, said the strategic interest of Axis Bank in Max Life will lead to the much-awaited permanence and allow both companies to work towards an enduring future for policyholders and other stakeholders.
"We also believe that the potential transaction will provide a fillip to the life insurance sector overall," he said in a statement.