Axis Bank Eyes Expanded Stake in Max Life Insurance Private sector lender Axis Bank is reportedly nearing an agreement to acquire a larger stake in Max Life Insurance Company. The move is part of the bank’s strategy to strengthen its financial services offerings and cater to the growing insurance needs of its customers. According to sources close to the development, Axis Bank is close to acquiring an additional 9% stake in Max Life Insurance, taking its total stake in the insurer to 18%. Max Life Insurance is currently a joint venture between Max Financial Services and Mitsui Sumitomo Insurance. The acquisition would give Axis Bank a greater say in Max Life Insurance’s operations and distribution strategy. It would also allow the bank to leverage Max Life’s strong brand and distribution network to offer insurance products to its customers. The insurance sector in India is witnessing robust growth, driven by increasing awareness, disposable income, and the need for financial security. Axis Bank’s move to expand its stake in Max Life Insurance positions itself to capitalize on this growth and solidify its position as a comprehensive financial services provider. The acquisition is expected to be completed in the coming months, subject to regulatory approvals. Once completed, it will enable Axis Bank to offer a wider range of insurance products to its customers, including life, health, and retirement solutions. Analysts believe that the acquisition would be a positive move for both Axis Bank and Max Life Insurance. It would strengthen Axis Bank’s insurance portfolio and provide Max Life with access to Axis Bank’s vast customer base. The combined entity would be well-positioned to compete in the increasingly competitive Indian insurance market.Axis Bank Trades in Green on Thursday
Axis Bank Trades in Green on Thursday Axis Bank shares are currently trading at Rs. 1229.15, an increase of 2.90 points or 0.24% from the previous close of Rs. 1226.25 on the BSE. The stock opened at Rs. 1233.95 and has fluctuated between a high of Rs. 1234.80 and a low of Rs. 1226.30 so far. Approximately 7393 shares have been traded on the counter. Axis Bank’s 52-week high is Rs. 1243.00, reached on June 19, 2024, and its 52-week low is Rs. 921.00, achieved on August 28, 2023. Last week, the stock’s high stood at Rs. 1243.00 and the low at Rs. 1170.50. The company’s current market capitalization is Rs. 378871.78 crore. The promoters’ stake in the company is 8.22%, while institutions and non-institutions hold 83.97% and 7.82% respectively. Axis Bank has received approval from its acquisition, disinvestment, and merger committee for the acquisition of additional shares in Max Life Insurance Company (Max Life) for an amount of up to Rs. 336 crore. This will increase the shareholding of Axis Bank and its subsidiaries to 19.99% from 19.02%. The transaction is subject to regulatory approvals. Axis Entities, including Axis Bank, Axis Securities, and Axis Capital, have been acquiring shares in Max Life since 2022. This acquisition strengthens Axis Bank’s position in the life insurance sector. Axis Bank is the third-largest private sector bank in India and offers a wide range of services to various customer segments, including large and medium-sized companies, SMEs, the agricultural sector, and retail customers.
Axis Bank is inching closer to acquiring a majority stake in Max Life Insurance, as per sources close to the development. The private sector lender is looking to increase its stake in the life insurer to up to 75%, from the current 18.3%. The deal, which could be valued at around Rs 2,500-3,000 crore, is expected to be completed by the end of the financial year. Axis Bank is said to be in talks with Max Financial Services, the promoter of Max Life, to acquire the additional stake. If the deal goes through, it will be a significant development in the Indian insurance industry. It will give Axis Bank greater control over Max Life, which is one of the leading private life insurers in the country. Axis Bank has been looking to expand its presence in the insurance sector for some time now. In 2019, it acquired a 18.3% stake in Max Life. The bank also has a joint venture with ICICI Lombard General Insurance. The acquisition of a majority stake in Max Life will give Axis Bank a complete insurance portfolio, including life, health and general insurance. It will also help the bank to cross-sell insurance products to its customers. Max Life Insurance is a joint venture between Max Financial Services and Mitsui Sumitomo Insurance Company. It has a market share of around 10% in the Indian life insurance industry. The acquisition of Max Life is part of Axis Bank’s strategy to become a full-fledged financial services provider. The bank has been expanding its presence in various segments, including retail banking, corporate banking, investment banking and asset management.
