Axis Bank is planning to buy around 20% stake in Max Life Insurance Co, the life insurance unit of Max Financial Services. The two entities have entered into an exclusivity deal for the purpose and the bank will have a long term bancassurance partnership with the insurance company. The company already has a bancassurance arrangement with Axis Bank, which was expected to come up for review in September 2021. The bank had in recent times tied up with Life Insurance Corporation of India and Bajaj Allianz Life Insurance Co to sell their products and Max Life Insurance Co had been concerned about these tie-ups as there are stipulations that a bank can sell products of 3 insurance firms through their branches. Max Life has been depending on Axis Bank’s branch network to sell its products and this network has been contributing as much as 54% of its business. Max Financial Services holds 72.5% stake in Max Life, while Mitsui Sumitomo Insurance and Axis Bank hold 25.5% and 2%, respectively.
