Max Life Insurance, the largest non-bank-promoted life insurer, will consider listing only when the foreign investment ceiling in the insurance sector is hiked to 49 per cent, its Chief Financial Officer, Prashant Tripathy, said.
“Listing has not gone off our radar. But it is an unwritten condition for us that listing will be pursued only after the foreign investment ceiling is hiked to 49 per cent from the current 26 per cent,” Tripathy told Business Line .
Tripathy said listing would not only improve visibility for the company but also help unlock value for shareholders.
“We will certainly look at listing. We will review listing potential in the next couple of years,” he said.
FII ceiling The valuation of the company will be better if the listing is pursued post the hike in foreign investment limit, Tripathy pointed out. Tripathy expressed confidence that the foreign investment ceiling would get hiked even if there is a political realignment and a new combine comes to power at the Centre in 2014.
“Whoever comes to power, one thing is certain. The pro-liberalisation agenda is not going to get reversed,” he said.
Max Life is open to more tie-ups with well-performing banks in both the private and public sectors, Tripathy said.
As for banks being allowed to take up the role of brokers, Tripathy said this may help enlarge distribution opportunities for Max Life as a non-bank-promoted life insurer.
“The response from banks has been lukewarm so far,” he noted.
Currently, Max Life has a bancassurance tie-up with Axis Bank, which Tripathy said has been working very well for the insurer.
STRATEGY REVIEW After a gap of two years, Max Life will soon undertake a strategic review to decide, among other things, the right mix for its distribution channels.
The insurer currently follows a multi-channel distribution model, comprising agents, banks and third-party distributors.