The Insurance Regulatory and Development and Development Authority has approved the 26% stake transfer in Max New York Life Insurance (MNYL) to Japan’s insurer Mitsui Sumitomo Insurance Company.
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Following the stake transfer, the US-based New York Life will exit from the joint venture with Max India. Max India is the holding company of Max New York Life Insurance which is a joint venture between Max India and New York Life. According to the share purchase agreement, Mitsui Sumitomo will acquire 16.63% equity share from New York Life and 9.37% from Max India.
In a separate agreement, New York Life has sold its 9.37% shares in MNYL to Max India.
Resultant to the proposed share combination, New York Life would completely exit from Max New York Life Insurance and India’s Max India and Japan’s Mitsui Sumitomo would control MNYL with Mitsui having 26 percent shareholding. Max India would be the largest shareholder with 69.78 % of equity capital share of MNYL. And the Axis Bank will continue to hold the rest 4% share.
Mitsui Sumitomo is a Japan-based leading general insurance company. Mitsui and its subsidiaries are mainly engaged in non-life insurance business across the globe. Though it is not engaged in life insurance business in India; but through its investment in Cholamandalam-MS General Insurance Company with 26 percent equity shares and in Cholamandalam-MS Risk Services with 50 percent share, it’s present in Indian Insurance industry.
http://www.insuringindia.com/News/IRDA-approves-26–stake-transfer-in-Max-New-York-Life-to-Japans-Mitsui.aspx
