New Delhi: Max India Ltd., 74% stakeholder of Max New York Life Insurance Company affirmed its plans to inject capital of over Rs 1,950 crore within the next three years as its share of capital infusion required for the insurance business.
Commenting on the capitalization plans for Max New York Life, Analjit Singh, chairman, Max India Ltd said, “Encouraged by impressive performance of our life insurance business, shareholders have decided to substantially increase the peak capital commitment for the venture. While the total investment into Max New York Life by both shareholders would be in excess of Rs2,600 crore by 2010-11, Max India, being the 74% shareholder would contribute close to Rs1,950 crore as its share of capital of which, Max India has already infused around Rs600 crore.”
The company recently raised Rs1,000 crore through a QIP issue, which is to largely get invested into the insurance subsidiary. The higher level of capitalization would see Max New York Life adding around 90-100 offices every year, going forward and increasing its distribution strength to over 200,000 agents in the next 4-5 years. The enhanced capital commitment would allow the venture to support its continuing rapid growth.
Max New York Life (MNYL) is a joint venture between Max India Ltd. and New York Life. MNYL has established a robust distribution network across the country. With 175 offices in 122 locations and more than 28,500 agent advisors, 17 bancassurance relationships, 14 corporate agents and around 450 people strong direct sales team, it has built a robust distribution network to support strong growth.