Axis Bank plans to hike its stake in Max Life ahead of a reverse merger with Max Financial Services, according to CEO Sumit Madan.

The merger, once completed, would let Axis Max list directly on the stock exchanges.

Madan said recent regulatory changes have made the reverse merger process clearer and easier to navigate.

He expects formal clarity on the merger structure within the next 60 to 90 days, with the full process taking around 12 to 18 months once the groundwork is done.

Asked whether Axis Bank needs to raise its stake before the merger and listing can go ahead, Madan said this is technically required, though he added that the stake increase and the merger process can move forward at the same time.

On the business side, Madan said retail premium growth at Axis Max Life has consistently run 200 to 500 basis points ahead of the private insurance industry, and he expects that gap to hold through FY27.

Retail annualised premium grew 16% in July, and he described August as similarly strong, with growth coming mainly from protection and annuity products rather than any single distribution channel.

Value of new business margins, a measure of profitability on fresh policies, have stayed in the 25% to 26% range, and Madan expects that band to continue through the financial year, even as one-off gains from bond yield movements in the April to June quarter normalise going forward.

On regulation, Madan was asked about proposals to make insurance commissions more visible to policyholders, an idea raised by the IRDAI chairman.

He said he supports the goal of transparency but wants to see how it is implemented before commenting further.

He pointed to past changes, including GST adjustments and new surrender value rules, as examples of regulatory shifts that eventually benefited both customers and the industry.

Ready to invest like a pro? Tradz by EquityPandit app equips you with 100+ Free tools and knowledge you need to succeed. Download the Tradz by EquityPandit app and gain access to daily stock lists and insightful market analysis and much more!