Max Life Insurance recently concluded one of the biggest transactions in the real estate sector by an Indian life insurance company.
The private life insurer has acquired a pre-leased commercial building spread over 1.79 lakh square feet in Pune’s Magarpatta city for Rs. 175 crore.
This strategic investment is in line with the company’s long-term investment strategy to diversify the overall risk in the portfolio by investing in multiple asset classes, including fixed income, equities, real-estate and alternative assets, to optimise returns for its policyholders.
Speaking about the transaction, Rajesh Sud, Executive Vice-Chairman and Managing Director, Max Life Insurance, said: “The recent real estate transaction is a long-term investment by Max Life and will add to the returns that we offer to our customers on their policies.”
In the last few years, Max Life’s Asset Under Management (AUM) has seen rapid growth. From a level of about Rs. 25,000 crore in FY14, it has grown to over Rs. 52,000 crore in FY18, and is expected to cross the 1-lakh crore mark over the next four years, he said.
Elaborating on Max Life’s investment plans, Mihir Vora, Director and Chief Investment Officer, Max Life Insurance, said: “Max Life is confident of its investment strategy, which is based on a deep understanding of the markets and economic conditions, locally and globally. We are positive on both equities and fixed income investments over the long-term, given the growth that India is likely to achieve in the next decade. We continue to invest in line with our philosophy of buying growth at a reasonable price.”
