MUMBAI, India--(BUSINESS WIRE)--
KKR today announced that it has acquired an approximate 9.95% stake in
Max Financial Services (BSE:500271), the newly demerged entity of the
Max Group that owns an approximate 72% stake in Max Life, India's
fourth-largest private life insurance player. KKR acquired its stake
from a sponsor group led by Analjit Singh, Chairman Emeritus of the Max
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KKR made its investment from its Asian Fund II through the portfolio
investment route. Further details of the transaction were not disclosed.
The partnership between KKR and Max Financial Services comes as the
Indian life insurance sector steadily recovers from a recent slowdown
and is poised for robust growth. Life insurance as a product category is
significantly under-penetrated in India versus some of its Asian peers.
India's increasing workforce, a rise in the country's median age and
favorable savings trends are all expected to drive insurance growth.
Max Group has a rich history of nurturing and building market-leading
businesses. Max believes that at this pivotal time for India's insurance
industry KKR brings significant experience and deep understanding of
financial services and the life insurance space.
Welcoming KKR's investment, Mr. Singh said, "KKR has been a
long-standing, value-added partner to Max Group across various business
initiatives. The extension of our partnership couldn't have happened at
a more opportune time than now, following the listing of Max Financial
Services which creates an unparalleled platform to invest in the Indian
life insurance space."
Sanjay Nayar, Member and CEO of KKR India, said, "We continue to believe
in India's growth potential, increase in financial savings and resultant
life insurance industry growth. Within the sector we are excited to
partner with Analjit Singh and his team at Max Financial Services, a
company which is well positioned in the life insurance industry."
JM Financial executed this trade on behalf of both parties.
About Max Financial Services
Max Financial Services Limited (MFS), a part of the US$ 2 billion Max
Group, is the parent company of Max Life, India's largest non-bank
private life insurance company. MFS actively manages 72 per cent stake
in Max Life Insurance Company Limited, making it India's first company
focused exclusively on life insurance. Max Life is a joint venture with
Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in
About Max Life
Max Life Insurance Company Ltd. (MLIC) is a joint venture between Max
Financial Services Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Mitsui
Sumitomo Insurance is part of MS&AD Insurance Group, which is amongst
the leading general insurers in the world. Max Life Insurance, one of
India's leading life insurers, offers comprehensive life insurance and
retirement solutions for long term savings and protection.
As a financially strong and stable company with focus on quality of
advice, sound investment expertise and service excellence, Max Life
Insurance has set in place a value driven culture and corporate
governance through its superior human capital. The Company has a country
wide diversified distribution model, including the country's leading
agent advisors, exclusive corporate agency arrangement with Axis Bank
and several other partners.
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world‐class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com and
on Twitter @KKR_Co.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160217006749/en/
(for KKR India)
Vaishnavi Ramakrishnan, +91-7506-932-067
Source: KKR & Co. L.P.
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