Japanese insurance company, Mitsui Sumitomo Insurance Company Ltd, has replaced New York Life International Holdings Ltd as the overseas partner of Max India Group in its insurance joint venture in the country — Max New York Life Insurance Company Ltd.
Mitsui Sumitomo Insurance has acquired 26 per cent stake in the Indian insurance outfit — 16.63 per cent stake from the US company and 9.37 per cent from Max India Ltd.
Max India Group had itself acquired 9.37 per cent stake in the insurance joint venture from its former partner Max New York Life Insurance Company, which had a 26 per cent stake, by paying an aggregate consideration of Rs 180.84 crore.
The amount was close to par value of the shares to ensure that the non-resident holding in MNYL was within the sectoral cap of 26 per cent.
But Max India Group received an aggregate consideration of Rs 984.44 crore from Mitsui Sumitomo Insurance for the sale of 9.37 per cent in MNYL, which was being renamed as Max Life Insurance Company Ltd, subject to regulatory approvals.
Max India said that its board of directors approved the purchase of 4 per cent equity stake held by Axis Bank in MNYL, in tranches not exceeding one per cent of equity stake every year before October 2020 for an estimated Rs 414 crore.
Of this purchase, maximum of one per cent stake was due to be bought in the near future, Max India Group said in a statement to the stock exchanges.