Private insurer Max New York Life on Wednesday said that it would sell 4 per cent stake to its bancassurance partner Axis Bank.
“We will dilute 4 per cent stake to our bancassurance partner Axis Bank. We have already received approval from Insurance Regulatory and Development Authority (IRDA) to carry out this process soon,” Max New York Life managing director and CEO Rajesh Sud said.
When asked about the deal, Sud declined to comment, but he said the embedded valuation would be disclosed by the end of this month or June. Max New York Life Insurance Company is a joint venture between Max India and New York Life International, a Fortune 100 company and the international arm of New York Life.
“Similarly, Axis Bank has also received the Reserve Bank’s approval to purchase the stake from the private insurer,” Sud said, adding that the dilution deal will further strengthen its capital requirement.