India?s third largest private sector bank, Axis Bank, will pick up a small stake of around 5% in Max New York Life, currently valued by analysts at Rs 4,500 crore. Max New York Life, a joint venture between Analjit Singh?s Max India and the US based New York Life, has a pan- India operation worth around Rs 9,000-crore asset under management(AUM).
The bank plans to distribute insurance products of New York Life. The partnership agreement is in the final stages, according to sources familiar with the development. Axis Bank was earlier selling products of MetLife India but has terminated its bancassurance arrangement with the insurer.
Max New York Life, which had started its operations in 2001, is now the seventh largest private sector life insurer company in the country.With a customer base of 4.3 million, the company has 714 branches. Apart from host of corporate agencies, the company has 7,200 agents.
With a capital base of Rs 1,786 crore, the company has sum assured of Rs 1,14,000 crore.Max India had raised $115 million from Goldman Sachs through a 15-month full convertible debentures with a coupon rate of 12% to fund the expansion of the insurance company. Goldman Sachs will get 9.4% stake after conversion of the instrument.