Mumbai: Max Financial Services Ltd on Friday said it will raise Rs5,000 crore to invest in subsidiary Max Life Insurance Co. Ltd, through either a preferential issue or a qualified institutional placement, for funding acquisitions.
Max Life has been looking for potential acquisitions in the life insurance space over the past few years. In July last year, it called off its plan to merge with HDFC Standard Life Insurance Co. Ltd after the insurance regulator raised a red flag on the proposed deal structure.
Max Life’s assets under management (AUM) stood at Rs50,333 crore at the end of December, recording a 23% growth as compared to the previous year, Max Financial Services said in a statement.
In the October-December period, Max Financial Services reported consolidated revenues of Rs3,666 crore, growing 10% over the corresponding period in the previous year. During the same period, Max Life reported revenues of Rs9,650 crore, adjusted sales of Rs764 crore and new sales (including individual and group sales) of Rs851 crore.
Rahul Khosla, president of Max Group and chairman of Max Life Insurance, said: “Max Life is well capitalized and continues to deliver strong growth through a well balanced product portfolio, high quality distribution partnerships and a market-leading agency force. In addition, the company will also pursue inorganic growth opportunities and is actively seeking high quality life insurance assets. Enabled by the fund-raising approved by the MFS (Max Financial Services) board today, we are committed to continue providing the capital the business needs to fulfil its growth aspirations.”
Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japanese life insurer.