Max New York Life Insurance, the largest non bank promoted private life insurer announced the completion of 26% of its stake transfer to Mitsui Sumitomo Insurance Co. Ltd. a MS&AD Insurance Group Holdings. The transfer was made after obtaining the requisite approvals from Insurance Regulatory and Development Authority (IRDA), The Reserve Bank of India and Competition Commission of India earlier this month. The company will now be named Max Life Insurance Co. Ltd. subject to regulatory approval.
Mr Analjit Singh, Chairman, Max India Limited, said, "For the next stage of Max Life Insurances growth and development, we view Mitsui Sumitomo as an ideal partner. I am confident that the rich experience, financial strength and risk management expertise of Mitsui Sumitomo Insurance, coupled with our inherent strengths of people and processes we have an even brighter growth journey in years to come."
The stake transfer successfully culminates the all cash transaction announced in May 2012 which resulted in MS&AD paying Rs. 2,731 crore (US$ 535 million) for 26% stake in Max New York Life, making it the 2nd largest foreign investment in the Indian Life Insurance sector. The transaction values Max Life at Rs. 10,504 crore (US$ 2.1 billion). Post transaction, Max India’s majority stake of 70% has remained unchanged.
Rajesh Sud, CEO & Managing Director, Max New York Life, said, "From a consumer standpoint, the transition will be seamless and we remain strongly committed to our strategy of serving the long term savings and protection needs of our customers."
Yasuyoshi Karasawa, President, Chief Executive Officer, Mitsui Sumitomo Insurance Co. Ltd., said "MNYL is the best possible life insurance company that we could have partnered with for our entry into the Indian Life Insurance space and we are excited about the growth possibilities given the demographic dividends and the domestic demand".