The Hindu Business Line : Promoters of Max New York Life to infuse Rs 2,600 cr

New Delhi, Dec 7 Max India Ltd and New York Life, the joint venture partners in Max New York Life Insurance Company, have announced plans to inject capital in excess of Rs 2,600 crore over the next three years in the insurance business.

Max India, which holds 74 per cent stake in the insurance company, will contribute close to Rs 1,950 crore as its share of capital.

Commenting on the investment plans, Mr Analjit Singh, Chairman, Max India Ltd said, “Encouraged by impressive performance of our life insurance business, the shareholders have decided to substantially increase the peak capital commitment for the venture. While the total investment into Max New York Life by both the shareholders would be in excess of Rs. 2,600 crore by 2010-11, Max India, being the 74 per cent shareholder would contribute close to Rs. 1,950 crore as its share of capital of which, Max India has already infused around Rs. 600 crore.”

“Max India has recently raised Rs. 1,000 crore through a QIP issue, which will largely get invested into the insurance subsidiary. The higher level of capitalisation would see Max New York Life adding around 90-100 offices every year going forward and increasing its distribution strength to over 200,000 agents in the next 4-5 years. The enhanced capital commitment would allow the venture to support its continuing rapid growth,” Mr Singh added.

MNYL has 175 offices in 122 locations and more than 28,500 agent advisors, 17 bancassurance relationships, 14 corporate agents and around 450 people strong direct sales team.