As the joint venture between Max India Group and its overseas partner New York Life International ends, Max New York Life Insurance will now be called Max Life Insurance. This move also marks the beginning of the life insurance companyâ€™s new found partnership with Japanese insurance brand, Mitsui Sumitomo Insurance Company, with the latter acquiring 26 per cent stake in the Indian insurance company.
According to the company the new brand name will further strengthen the trust and consumer confidence in the Max India brand. The change will not have any effect on the brand equity that the company has been providing to its customers. Rajesh Sud, CEO & Managing Director, Max New York Life, said, â€œWe are delighted that the Board members of Max New York Life Insurance have approved the transaction in todayâ€™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.â€
The move also saw the appointment of Toshinari Tokoi, and Hideaki Nomura into the Max Life Insurance Companyâ€™s Board of Directors, as representatives of the overseas company. Speaking on the appointment, Analjit Singh, Chairman, Max India Limited, said, â€œI 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.â€
The stake transfer completes the all cash transaction announced on 12th April 2012 which resulted in MS&AD paying Rs 2,731 crore (US$ 483 million) for 26 per cent 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). Post transaction, Max Indiaâ€™s majority stake of 70 per cent has remained unchanged.
According to Rahul Khosla, Managing Director, Max India Limited, â€œMax 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 come true. Given that it accounts for about 80% of the Group revenue, we are committed to this business and will continue to nurture it.â€
Speaking on the new JV, Yasuyoshi Karasawa, President, Chief Executive Officer, Mitsui Sumitomo Insurance, said â€œMax India is one of Indiaâ€™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 our association with the Indian insurance market.â€