New Delhi, Apr 6 (IANS): Lending major Axis Bank, along with its subsidiaries, have become the co-promoters of Max Life Insurance Company.

The bank and its subsidiaries Axis Capital and Axis Securities have completed the acquisition of 12.99 per cent stake collectively.

"The transaction was completed after the Insurance Regulatory and Development Authority of India (IRDAI) gave its formal approval in February this year," the bank said in a statement.

"Max Life's holding company Max Financial Services and Axis Bank had first announced their intent to bring in the latter as a strategic partner in Max Life in February 2020."

According to the statement, the Axis entities have a right to acquire an additional stake of up to 7 per cent in Max Life, in one or more tranches, subject to regulatory approvals.

"With the conclusion of this transaction, Max Life's Board will be strengthened further, with co-option of three nominee directors of Axis Entities on its Board."

As per the statement, the bank has shared a successful business relationship with Max Life for over a decade, providing long-term saving and protection products to nearly 20 lakh customers.

"The total premium generated through this alliance has aggregated to over Rs 40,000 crore. Both companies have invested extensively in product and need-based sales training, thereby leading to a consistent increase in productivity."

"Max Life has been consistently outperforming the private industry. Its asset under management (AUM) grew by 23 per cent YoY and reached Rs 84,724 crore as on 31st December 2020, which has more than doubled in less than 4 years."