KKR buys 10% stake in Max Financial Services

Image: Amit verma

Analjit Singh, chairman, Max Group

Global private equity firm KKR and Co Lp on Thursday said it had acquired a 9.95 percent stake in Max Financial Services, the newly demerged entity of the Max Group that owns about 72 percent 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 Group.  

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 at a time when the Indian life insurance sector is steadily recovering 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 favourable savings trends are all expected to drive insurance growth.  

“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,” says Sanjay Nayar, chief executive of KKR India.   

JM Financial executed this trade on behalf of both parties.