in present,
and its two subsidiaries – Axis Capital Ltd. and Axis Securities Ltd. – collectively own 12.99 per cent of Max Life Insurance since the deal was approved in April last year.
“Currently the bank has around 13 per cent and we expect they will be able to take it to 20 per cent in the next 2-3 quarters,” Tripathi told PTI in an interview.
Under the deal, Axis entities are entitled to acquire an additional stake of up to seven per cent in Max Life, in one or more tranches, subject to regulatory approval.
He further added that Bancassurance with Axis Bank has seen a growth of 18-20 per cent in the last five years and 60 per cent of new sales are currently driven by Axis Bank’s tie-up. Apart from Axis Bank, the life insurer has a bancassurance partnership
and some other co-operative banks.
Bancassurance is an arrangement between a bank and an insurance company, which allows the latter to sell its products to the bank’s customers and others through a branch network.
Speaking about the new line of business, Tripathi said, Max Life Insurance forays into the pension fund management business as its subsidiary has received a commencement certificate from the Pension Fund Regulatory and Development Authority (PFRDA). .
Max Life Pension Fund Management Limited, a subsidiary of the life insurance firm, will manage the pension assets with investment options under the National Pension Scheme.
Established with an initial capital of Rs 50 crore, the fund manager is expected to start its operations in October, he added.
He said the pension fund will manage the pension assets, excluding the ‘default scheme’ for private sector subscribers and government sector customers, aiming to raise the assets under management (AUM) to Rs 1 lakh crore in the next 10 years.