Max Life Insurance (MLI) has reportedly sought approval from the Indian insurance regulator IRDAI to set up a subsidiary.
MLI is planning to set up a pension funds management business, the Hindu Business Line reported citing MLI CEO and managing director Prashant Tripathy.
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“Our foray into pension fund management business is part of our aspiration to become a prominent player in the retirement space. This fits into that overall strategy. This is another extension of our fund management play,” Tripathy was quoted by the publication as saying.
Recently, MLI was approved to become a sponsor of a pension fund manager by the country’s pension regulator PFRDA.
Tripathy expects to receive IRDAI’s nod in the next few weeks.
MLI will invest an initial amount of INR500m ($6.64m) in the subsidiary, which will be formed as a part of the life insurance business.
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By GlobalData“Over the next 5-6 months, we will set it up with independent entity, board, governance etc. We are now kickstarting the process,” Tripathy added.
As per the preliminary estimates, MLI Pension Fund aims to manage assets worth $1.33bn (INR100bn) within five years from the launch of the new entity.
Meanwhile, CNBCTV18 has reported that the Securities and Exchange Board of India has approved the initial public offering (IPO) of Star Health Insurance.
The insurer plans to raise nearly $730.41m (INR55bn) through its IPO, which includes an issue of fresh shares and offer-for-sale from promoters and shareholders.
