Max New York Life to be named Max Life Insurance

Max New York Life Insurance, the largest non bank promoted private life insurer on Wednesday announced the completion of 26 percent of its stake transfer to Mitsui Sumitomo Insurance Co Ltd a MS &AD Insurance Group Holdings company.

The transfer was made after obtaining the requisite approvals from Insurance Regulatory and Development Authority (IRDA), The Reserve Bank of India and Competition Commission of India earlier this month. The company will now be named Max Life Insurance Co Ltd subject to regulatory approval. The new brand name further strengthens the trust and consumer confidence in the Max India brand.

The company also announced the appointment of Toshinara Tokoi and Hideaki Nomura into the Max Life Insurance board of directors as representatives of Mitsui Sumitomo Insurance Co Ltd. Tokoi has more than 30 years’ experience in insurance industry which encompasses expertise in the fields of planning, sales production, underwriting of marine insurance as well as governance and administration of international business operations. Nomura has 26 years’ of experience in financial industries, including insurance, banking and investment banking. He has been instrumental in establishing Mitsui Sumitomo’s presence in the Asian local insurance businesses.

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The stake transfer successfully culminates the all cash transaction announced in May 2012 which resulted in MS&AD paying Rs 2,731 crore ($ 535 million) for 26 percent stake in Max New York Life, making it the second largest foreign investment in the Indian Life Insurance sector.

The transaction values Max Life at Rs 10,504 crore ($ 2.1 billion).

“The consideration offered by MS&AD reflects the strong confidence in Max New York Life and its superior performance, as demonstrated in 2011 when the company’s standing rose from 7th to 4th position in the Indian Private Life Insurance league tables, gaining 247 basis points market share in a highly competitive space,” the statement said.

Post-transaction, Max India’s majority stake of 70 percent has remained unchanged.

Analjit Singh, Chairman, Max India Limited, said, “I am delighted to welcome Mr Toshinari Tokoi, Assistant Director, Sumitomo Insurance Co Ltd and Mr Hideaki Nomura as the representative Directors from Mitsui Sumitomo Insurance on Max Life Insurance Board. For the next stage of Max Life Insurances growth and development, we view Mitsui Sumitomo as an ideal partner. I am confident that the rich experience, financial strength and risk management expertise of Mitsui Sumitomo Insurance, coupled with our inherent strengths of people and processes we have an even brighter growth journey in years to come.”

Yasuyoshi Karasawa, President, Chief Executive Officer, Mitsui Sumitomo Insurance Co Ltd said “Max India is one of India’s most admired companies with a well recognised brand and a deeply experienced management team. MNYL is the best possible life insurance company that we could have partnered with for our entry into the Indian Life Insurance space and we are excited about the growth possibilities given the demographic dividends and the domestic demand”