Insurance regulator IRDA has approved 26% stake transfer in Max New York Life Insurance (MNYL) to Japan's Mitsui Sumitomo Insurance Company. With the stake transfer, the US-based New York Life will exit from the joint venture with Max India. Max India is the holding company of MNYL which is a joint venture between Max India and New York Life.

According to the share purchase agreement, Mitsui Sumitomo will acquire 16.63% equity share capital of MNYL from New York Life and 9.37% from Max India.

Subsequent to the proposed combination, New York Life would completely exit from MNYL, and Max India and Mitsui Sumitomo would control MNYL with Mitsui having 26% shareholding.

After the arrangement, Max India would be the largest shareholder holding 69.78% of equity capital of MNYL. Besides, Axis Bank continues to hold the balance 4%.

Japanese insurance company Mitsui Sumitomo and its subsidiaries are mainly engaged in non-life insurance business across the globe.

Source - BS.com

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