Page 16 - Insurance Times September 2023

Axis Bank to pick up 6% more in Max Life Insurance recent Finance Act 2023 which
introduced changes in taxation of life
for Rs. 1,612 crore insurance policies.
Axis Bank is looking to buy 6 per cent more stake in JV Max Life Insurance for The guidelines explain the implications
Rs. 1,612 crore by way of preferential issue of 14.3 crore equity shares. of the amendments under various
This will take Axis Bank's shareholding in the insurer to 16.2 per cent and situations with examples and has
Axis Group's shareholding to 19 per cent from the current level of 13 per clarified that the prescribed premium
cent. On the other hand, JV partner and promoter Max Financial Services' threshold shall be exclusive of GST
shareholding will fall to 81 per cent from 87 per cent. component.
The share issue will be at fair market value of Rs. 113.06, determined on the
basis of DCF (discounted cash flow) methodology. The bank will retain the EPFO to appoint actuary
right to acquire an additional 0.98 per cent stake from Max Financial in the to provide consultancy on
next 15 months.
insurance, pension
The proposed transaction, expected to be completed in 46 months, is subject
The Employees' Provident Fund
to approval of shareholder and regulators including IRDAI, PFRDA and CCI. The
RBI has approved the proposed stake buy the entities informed the exchanges. Organisation (EPFO) is in the process of
appointing an actuary firm for the
"The increase stake in Max Life by Axis Bank, has been long awaited and will purpose of providing consultancy
lead to a more natural balanced ownership level considering the importance services to it on matters related to
of the power of distribution through the Banca channel of Axis Bank," insurance and staff pension cum
Chairman Analjit Singh said. gratuity.
Max Life will use the proceeds to support future growth ambitions, augment The statutory body under the Ministry
its capital position and improve solvency margins, with MD and CEO Prashant of Labour & Employment had issued a
Tripathy saying that the additional investment will help strengthen the request for proposal (RFP) to appoint
franchise, with a focus on driving new and strategic partnerships to unlock an actuary or an actuarial firm to carry
growth along with building momentum in the existing ones. out the annual valuation of the
Employees Deposit Linked Insurance
Shriram Life insurance logs year-ago period. In group premiums, (EDLI) scheme fund.
new business grew to Rs. 354 crore It would also undertake valuation and
Rs. 35 crore net profit in from Rs. 93 crore, according to a projection exercise of the Employee
Q1 statement. Pension Fund (EPF) staff pension cum
Shriram Life Insurance has reported a Growing individual new business would gratuity scheme, leave encashment
12 per cent dip in profit after tax at Rs. be a key focus area for the current and any other scheme for EPFO
35.4 crore for the quarter ended June fiscal with the company expecting to employees that may be applicable.
30, 2023, compared to Rs. 39.6 crore grow by 20-25 per cent in this segment. The proposal to elicit response from
in the year-ago quarter. "We are focused on reaching more the interested actuarial firms was
customers and exploring newer markets issued and the process is slated to
The company's total premium surged
to increase insurance penetration in the commence by August 17.
82 per cent to Rs. 717 crore in Q1 of
rural and middle-income segment," said
this fiscal, compared to Rs. 392 crore The approved consultant will be
Casparus J Kromhout, MD & CEO,
in Q1 of FY23, driven by group empanelled with the EPFO
Shriram Life Insurance.
premium, which accounted for more headquarters in New Delhi for a
than half of the total premium. tenure of one year.
CBDT issues norms on life
Its new business premium, which Last year, EPFO had also issued an RFP
includes both individual policies as well insurance policies to appoint an actuarial consultant to
as group policies, stood at Rs. 488 The Central Board of Direct Taxes study the Employee Pension Scheme
crore, up from Rs. 207 crore in the (CDT) has issued guidelines on the (EPS)-1995. R

14 September 2023 The Insurance Times