New Delhi, May 29 -- Axis Max Life Insurance Ltd, a joint venture between Max Financial Services Ltd and Axis Bank, is raising fresh capital from an offshore investor to support its business growth.
The company, which was earlier known as Max Life Insurance and rebranded in 2024 after Axis Bank hiked its stake to more than 19%, is raising Rs 285 crore (around $33 million) from International Finance Corporation (IFC) by issuing non-convertible debentures. The tenor of the loan is up to 10 years, according to a disclosure.
IFC, the private-sector investment arm of the World Bank Group, has also helped the insurer mobilise Rs 515 crore ($60 million) in debt capital from other institutional investors. The names of the other investors weren't disclosed.
The fresh capital will help strengthen the insurer's solvency margin and support its business growth in the largely underpenetrated life insurance market in India.
Established in 2000, Axis Max Life Insurance has a network of over 400 branches and insured more than 6 million lives in FY25. The company offers a full suite of life insurance products comprising protection and health, investment and retirement solutions.
Max Financial Services owns a near 81% stake in the life insurer, while the remaining 19% stake is held by Axis Bank and its subsidiaries.
The life insurer's net profit rose to Rs 406 crore in the financial year ended March 2025 from Rs 360 crore earlier. Its gross direct premium rose to Rs 33,223 crore in FY25 from Rs 29,529 crore the year before.
Axis Bank, India's third-largest private-sector bank, first picked up a small stake in the insurer in 2010. It increased its stake in 2020 and then again in 2024, when the insurer was rebranded.
Published by HT Digital Content Services with permission from VC Circle.