No proposal with Irdai for 10% stake sale in Max Life to Axis bank: MFS

Max Financial Services Tuesday said it has not approached insurance regulator Irdai with any proposal to sell 10 per cent stake in its insurance subsidiary Max Life to Axis Bank.

"We also wish to reiterate that the long standing bancassurance relationship between Max Life and Axis Bank continues to be strong and highly productive," Max Financial Services (MFS) said in a regulatory filing.

MFS said it has not approached Insurance Regulatory and Development Authority of India (Irdai) with any proposal for Axis Bank purchasing 10 per cent stake in Max Life.

The clarification came in response to media reports that Axis Bank may have to shell out more money to increase its stake in Max Life.

Max Life Insurance is a joint venture between MFS and Mitsui Sumitomo Insurance of Japan.

MFS owns 71.79 per cent stake in Max Life, Mitsui Sumitomo Insurance holds 25.22 per cent and Axis Bank 2.99 per cent.

In 2011, Axis Bank acquired 4 per cent stake in Max Life for an undisclosed value.

During 2018-19, Max Life recorded gross written premium of Rs 14,575 crore.

As on March 31, 2019, the company had Rs 62,798 crore of asset under management and a share capital including reserves and surplus of Rs 2,767 crore.