Max Financial Services rallied 9 per cent last Thursday, on reports of Axis Bank looking to a buy a stake in Max Life Insurance (a subsidiary of Max Financial Services). The company subsequently clarified on the exchanges that Axis Bank, Max Financial Services and Max Life Insurance had signed a confidentiality and exclusivity arrangement to explore the possibility of Axis Bank entering into a long-term strategic partnership with Max Life.
While the details of the transaction are awaited, a deal that strengthens the relationship with Axis Bank will augur well for Max Life. The bancassurance partnership with Axis Bank has been a key growth driver for Max Life.
Currently 55 per cent of new business APE (annualised premium equivalent) is sourced by Axis Bank. In the first nine months of FY20, individual APE for Max Life grew by 20 per cent, with increased contribution from protection and non-par savings products.