Axis Bank and two of its subsidiaries have become the co-promoters of Max Life Insurance Company after collectively completing the acquisition of 12.99% stake in Max Life Insurance Company.

Axis Bank’s subsidiaries which were involved in the deal include Axis Capital and Axis Securities (collectively referred to as ‘Axis Entities’). The board of Max Life, India’s fourth largest private insurance firm, recorded the closure of the deal today.

The transaction was completed after the Insurance Regulatory and Development Authority of India (IRDAI) gave its formal approval in February this year. Max Life’s holding company, Max Financial Services, and Axis Bank had first announced their intent to bring in the latter as a strategic partner in Max Life in February 2020.

The Axis Entities have a right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, subject to regulatory approvals.

With the conclusion of this transaction, Max Life’s board will add three nominee directors of Axis Entities.

Said Axis Bank managing director and CEO Amitabh Chaudhry, “We are delighted to see the strategic partnership come through. Axis Bank has been a long-term partner to Max Life and together we have contributed to deepening insurance penetration in India over the last decade. We have the opportunity now to shape the future of the industry through continued leadership in products, technology, and customer centricity. We are confident this venture will enhance the value for all the stakeholders of Axis Bank and Max Life.”

Added Max Group and Max Financial Services chairman Analjit Singh, “The conclusion of this transaction is truly a monumental milestone, which will bring added strength to Max Life and help it chart a new growth trajectory by combining the forces of the third largest private bank in India with the fourth largest private life insurer in the country.”