Axis Bank's Rs 1612 Cr Investment To Bolster Max Life Insurance's Solvency
Axis Bank's capital infusion of Rs 1,612 crore is set to bolster the financial strength of Max Life Insurance, facilitating its expansion plans. Prashant Tripathy, MD and CEO of Max Life Insurance, expressed optimism about pending regulatory approvals for the infusion, which would elevate the company's solvency ratio from 188 per cent to approximately 227-228 per cent. This capital injection is expected to provide the necessary resources for Max Life Insurance's growth initiatives.
Tripathy emphasised the significance of capital for financial services companies seeking expansion, particularly in areas such as offering more protection, non-par policies, annuities, and expanding their distribution channels. Max Life Insurance aims to achieve a growth rate exceeding 20 per cent on an annual premium equivalent basis for 11 months of the fiscal year, excluding March, which was influenced by budget-related policy changes for premiums exceeding Rs 5 lakh.
In the first quarter of the fiscal year, Max Life witnessed a substantial 25 per cent growth in its new business premium, reaching Rs 1,857 crore. Tripathy attributed this growth to favourable developments in channels, partnerships, and product offerings.
The company is committed to agent recruitment, with a notable 50-60 per cent growth in the first few months of the fiscal year. Max Life Insurance plans to onboard approximately 50,000 new agents and expand its presence by opening 100 new offices in different regions.
Tripathy emphasised a focus on profitable growth and market share expansion, with the company dedicated to surpassing market growth rates in the coming years.
