Max New York Life Insurance, the largest non-bank private life insurer, today announced the completion of its 26% stake transfer to Mitsui Sumitomo Insurance Co. Ltd., a MS&AD Insurance Group Holdings. The transfer was made after obtaining the requisite regulatory clearance from the Insurance Regulatory and Development Authority (IRDA), the Reserve Bank of India and Competition Commission of India. 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 Mr. Toshinari TOKOI and Mr. Hideaki NOMURA on Max Life Insurance's Board of Directors as representatives of Mitsui Sumitomo Insurance Co. Ltd. Mr. Tokoi has more than 30 years' experience in the insurance industry and played a pivotal role in establishing a strong insurance foothold for MSI in Asia. In addition to his insurance expertise, he brings extensive experience in governance and administration of international business operations. Mr. Nomura has over 25 years of experience in the financial industries, including insurance, banking and investment banking, with a key focus to strategically establishing new ventures in Asia.
The stake transfer successfully culminates the all cash transaction announced on 12th April 2012 which results in MS&AD paying Rs 2,731 crore (US$ 483 million) for a 26% stake in Max New York Life, making it the 2nd largest foreign investment in the Indian Life Insurance sector. The transaction values Max New York Life at Rs 10,504 crore (US$ 1.86 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 table, gaining 247 basis points market share in a highly competitive space. Post transaction, Max India's majority stake of 70% remains unchanged.
Speaking at the occasion, Mr Analjit Singh, Chairman, Max India Limited, said, "I am delighted to welcome Mr. Tokoi and Mr. Nomura as the representative Directors from Mitsui Sumitomo Insurance on Max Life Insurance Board. For the next stage of Max Life Insurance's growth and development, we view Mitsui Sumitomo as an ideal partner. I am confident that the rich experience and financial strength of Mitsui Sumitomo Insurance, coupled with our inherent strengths of people and processes, will yield an even brighter growth journey over the years to come."
According to Mr. Rahul Khosla, Managing Director, Max India Limited, "Max India has a vision of being the "Most admired corporate for service excellence" and Max Life Insurance will be in the forefront of all our efforts in making our vision comes true. Given that it accounts for about 80% of the Group revenue, we are committed to this business and will continue to nurture it."
Rajesh Sud, CEO & Managing Director, Max New York Life, said, "We are delighted that the Board members of Max New York Life Insurance have approved the transaction in today's board meeting, taking the Company to the next phase of its growth. From a consumer standpoint, the transition will be seamless and we remain strongly committed to our strategy of serving the long term saving and protection needs of our customers. Over the years, we have built a financially strong and respected company and are confident that our advice based sales, comprehensive product portfolio, diversified distribution model and customer centric approach at every touch point will continue to differentiate us in the market place basis."
Speaking on the occasion, 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 recognized 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 our association with the Indian insurance market."
About Max New York Life (www.maxnewyorklife.com)
Max New York Life Insurance Co. Ltd. is a joint venture between Max India Ltd., one of India's leading multi business corporations and New York Life Enterprises LLC, a subsidiary of New York Life, a Fortune 100 company. Max New York Life Insurance, incorporated in 2000, is the largest non-bank promoted private life insurance company in India. The company offers both individual and group life insurance solutions. It has established a multi-channel distribution network across India. Through its wide network of highly competent life insurance agent advisors & intermediaries and comprehensive product portfolio, Max New York Life is providing life insurance solutions for its core value of Long-term Savings and Protection.
About Max India (www.maxindia.com)
Max India Group is a multi-business corporate, driven by the spirit of enterprise and focused on people and service oriented businesses. The Company is headquartered in New Delhi, India. Max India is in the ‘Business of Life' with its vision to be one of India's most admired corporates for Service Excellence. It ‘Protects Life' through its Life Insurance subsidiary Max New York Life; ‘Cares for Life' through its Healthcare company, Max Healthcare, a joint venture between Max India and Life Healthcare, South Africa; ‘Enhances Life' through its Health Insurance company, Max Bupa Health Insurance, a joint venture between Max India and Bupa Finance Plc., UK; and ‘Improves Life' through its Clinical Research business, Max Neeman, a fully owned subsidiary of Max India Max India continues its interest in manufacture of Speciality Products for the packaging industry through its SBU Max Speciality Films. and recently entered Senior Living Business through its fully owned subsidiary, Antara.
For the Financial Year 2011-12, Max India Group recorded a consolidated turnover of over Rs. 8,560 crore. The Group's businesses have built commanding presence in their respective sector through a total customer base of more than 5 million, over 500 offices spread across India and a people strength of 57,000 as on 31st March 2012.
The flagship company Max India Limited is a widely held public limited company and is listed on the BSE and the NSE. The company is led by Analjit Singh who holds 37% stake and has as its shareholders some of world's best Institutional Investors such as Goldman Sachs, Fidelity, IFC, First State and Temasek.
About Mitsui Sumitomo Insurance
Mitsui Sumitomo Insurance Co., Ltd. (MSI) is a member of MS&AD Insurance Group headquartered in Tokyo, Japan. MSI was formed in October 2001 through a merger between the former Mitsui Marine & Fire Insurance Co., Ltd.("Mitsui Marine") and the former The Sumitomo Marine & Fire Insurance Co., Ltd. ("Sumitomo Marine"). Both Mitsui Marine and Sumitomo Marine were leading general insurance companies boasting long history since 1918 and 1893, respectively.
Having a history of 120 years in general insurance business, today, MSI has developed an overseas network of about 400 bases in 40 countries and regions globally, mainly in high-growth areas within Asia. With more than 50 years of experience in operating outside Japan, MSI aims to supply products and services tailored to various risks around the world.
In addition to general insurance business, MSI has strong experience and an extensive track record in the area of Life Insurance through its domestic subsidiaries, Mitsui Sumitomo Aioi Life and Mitsui Sumitomo Primary Life, both of which are currently owned by the group's holding company MS&AD Insurance Group Holdings, Inc. MSI also has a presence in Life Insurance markets of Thailand, China, Malaysia and Indonesia.
In India, MSI has been operating its general insurance business through its joint venture "Cholamandalam MS General Insurance Company Limited" since 2003.