Max Life has always been treated as an outcast, not quite in the league of hallowed names; It was always considered an ideal acquisition candidate but never allowed to dictate its terms. Oh, how the fortunes have turned.
After the failed merger attempt with HDFC Life in 2017, Max Life has finally managed to roll its dice well - Axis Bank has agreed to purchase an additional 29% stake in the company.
Axis Bank and Max Life Insurance have had a business relationship for over a decade. However, the entry of Axis Bank as a significant stakeholder will open up a much-needed bancassurance channel for Max Life, getting preferred treatment across the Axis bank counters.
Key takeaway: Bancassurance - the selling of life assurance and other insurance products and services
The Bancassurance channel forms the most integral part of a distribution mix for all the other listed insurance companies. By getting unrestricted access to Axis Bank branches and strong customer base, Max Life may have finally completed its journey from being an outcast to a crucial insider of the insurance industry.