Axis Bank eyes 10% stake in Go Digit life insurance

Bank Axis India is in talks to acquire shares in Go Digit Life Insurance, two sources with direct knowledge about the problem to Reuters, when the third largest private lender in the country tried to use the fast growing insurance market.

Axis plans to take 10% shares with a price of around $ 9 million in the upcoming life insurance business, effectively assesses the business of $ 90 million, said the two sources, who refuse to be called a personal negotiations.This step was taken after the largest private lender in India, HDFC Bank said in the disclosure of the stock market last week that his party planned to buy 9.94% of shares at Go Digit Life up to 700 million rupees ($ 9 million).

Digit start-up, which has worked in the general insurance business, is demeaning the life insurance market with the “Go Digit Life” business.

A digit spokesman refused to comment, said the company had not received a license for the life insurance business. Axis did not respond to Reuters’ comments requests.

Go Digit General Insurance, the general digit insurance business, said it was worth $ 4 billion and was supported by the Billionaire of Canada Prem Watsa and Sequoia Capital. Offering products such as health coverage, travel, and cars.

Axis plans underline increased interest in the insurance business that benefits India from private lenders, one of the sources said, adding that partnerships with digits can help Axis meet their insurance ambitions.

The Indian Life Insurance Market, the tenth largest world, most of them still have not been utilized. Penetration of Life Insurance – measured by the country’s life insurance premium as a percentage of gross domestic product – grew to 3.2% in fiscal years until 2021, up only slightly from 2.15% two decades ago, according to data from Indian insurance regulators.

While Axis currently offers several insurance products in partnerships with Max Financial, digit agreements can provide a better axis of understanding of the online insurance industry and enable it to increase outreach to insurance customers with its own banking offer, the source said.

Insurance companies in India increasingly captivate customers with online offers, promising instant policy publishing and easier claims. Insurance sales through traditional agents remain popular in India, especially in small cities.

Go Digit General Insurance New -Newly submitted a letter to collect at least $ 440 million through the initial public offering, targeting the assessment of $ 5 billion. The founder of Kamesh Goyal was an industrial veteran who previously led the Indian Allianz German joint venture.