Axis Bank, along with its subsidiaries, Axis Capital and Axis Securities, has become the co-promoter of Max Life Insurance, after completion of the acquisition of 12.99 per cent stake by them.

“The board of Max Life recorded the closure of the deal today,” the companies said in a statement on Tuesday.

The transaction was completed after the Insurance Regulatory and Development Authority of India 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 seven per cent in Max Life, in one or more tranches, subject to regulatory approvals.

“With the conclusion of this transaction, Max Life’s board will be strengthened further, with the co-option of three nominee directors of Axis entities on its board,” the statement further said.

“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,” said Amitabh Chaudhry, Managing Director and CEO, Axis Bank.

Axis Bank and Max Life have had a business relationship for over a decade with over 20 lakh customers. The total premium generated through this alliance has aggregated to over ₹40,000 crore.

Analjit Singh, Chairman, Max Group and Max Financial Services, said the conclusion of the transaction 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.

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