In line with the proposed deal, Axis Bank is likely to raise its stake in Max Life Insurance to about 20 per cent over the next 12-18 months, said the insurance company's CEO Prashant Tripathy said.
Currently, Axis Bank and its two subsidiaries -- Axis Capital Ltd and Axis Securities Ltd -- collectively own 12.99 per cent in Max Life Insurance post approval of the deal in April this year.
With this, Axis entities have now become co-promoters of Max Life with three board seats.
"Axis Bank is to increase to 19.99 per cent in tranches. Thirteen per cent is already done over the next two quarters, we will seek approval for the balance seven per cent. So, it will reach about 20 per cent and that will be the ownership of Axis Bank," Tripathy told PTI.
When asked about the timeline for the completion of the remaining stake transfer, he said: "It should happen in the next 12 to 18 months." Under the deal, the Axis entities also have the right to acquire an additional stake of up to seven per cent in Max Life, in one or more tranches, subject to regulatory approvals.
Tripathy said there is no change in brand but the tagline will have the name of Axis Bank as the joint venture partner.
Talking about synergy, he said, "We are coming up with a new strategy for future growth. We are working together as a common team to ensure that Max Insurance life grows faster than the industry. We are working together to look at product mix to drive Axis channel so outcome is favourable for both customers and the company." Besides, he said working on analytics areas to leverage on each other's capabilities.
He said the company launched 14 products or product variants last year and increased the margin by 3.60 per cent in 2020-21.
Max Life Insurance recorded a 22 per cent rise in its total new business premium (individual and group) to Rs 6,826 crore in the financial year ended March 2021.
The renewal premium income of the insurer rose 15 per cent to Rs 12,192 crore, taking the gross premium to Rs 19,018 crore, up by 18 per cent from a year ago.
In terms of individual APE (adjusted premium equivalent), the company witnessed a growth of 19 per cent to Rs 4,907 crore.
Max Life's post-tax shareholders' profit fell six per cent to Rs 523 crore in 2020-21 as compared to Rs 539 crore in the previous year.