Axis Max Life CEO on Axis Bank stake increase and reverse merger with Max Financial

Sumit Madan, MD and CEO of Axis Max Life Insurance, said Axis Bank has clearly stated a desire to increase its stake in the company as the life insurer prepares for a reverse merger with Max Financial Services, a transaction that would enable Axis Max to list directly on stock exchanges.

Recent regulatory changes have brought greater clarity to the reverse merger process, with formal procedures expected to become clearer over the next 60 to 90 days, Madan said. “The process has also become much easier, which is like a good, positive step for us,” he said. Once the necessary groundwork is completed, the merger is expected to take around 12 to 18 months.

Madan said clarity on the merger structure should emerge within the next three months. Once the groundwork is done, the merger could take around 12 to 18 months to be finalised.

On whether Axis Bank would need to raise its stake before the merger and listing take place, Madan said,"Technically, yes, but the two processes can run parallel as well," he said, when asked

Axis Max Life growth outlook for FY27

Madan said the company's retail premium growth has consistently outpaced the private insurance industry, and he expects that trend to continue into FY27. "We've always maintained a delta of anything between 200 bps and 500 bps as far as the market is concerned, the private industry," he said. "I would very safely say we'll continue to be on the same trajectory."

Retail annualised premium (a measure of new insurance policy sales) grew 16% in July. Madan said August numbers are still being finalised but described the month as similarly strong. Protection and annuity products have driven much of the recent growth, he said, without heavy reliance on any single distribution channel.

Madan said the company has kept margins between 25% and 26% on value of new business (VNB) margins — a measure of profitability on new policies sold — and expects that range to hold through the financial year 2026-27 (FY27). He noted that VNB growth in the

April-June 2026 quarter benefited from bond yield movements and may normalise in coming quarters, though margins should stay within the same band.

Regulatory changes on commissions

Madan was also asked about possible regulatory changes to insurance distribution commissions, including a recent comment from the IRDAI chairman that policyholders should know how much commission goes to the distributor when they buy a policy. Madan said he supports the goal of transparency but wants to see implementation details before commenting further.

"The chairman's intent is to make products more transparent as far as customers are concerned. I would totally agree with it in terms of the transparency to bring in," he said.

He added that past regulatory changes — including goods and services tax (GST) adjustments and new surrender-value rules — have benefited both customers and the industry over time, and he expects new commission-related rules to follow the same pattern.

For the full interview, watch the accompanying video



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