Insurance stock jumps after board approves amalgamation with Axis Max Life Insurance

Synopsis: The Insurance stock moved up nearly 1.2% after board approval for an insurance amalgamation involving a 19.02% Axis stake. The life insurer serves 50+ million customers, boasts a 99.70% claim settlement ratio, manages ₹1.7 lakh crore in assets, and operates through 405 branches nationwide.

The share of the insurance solutions provider gained up to 1.2 percent in today’s trading session after the company’s board has granted in-principle approval for a potential amalgamation.

With a market capitalisation of Rs 55,620.42 crore, the shares of Max Financial Services Ltd were trading at Rs 1,611.65 per share, decreasing around 0.77 percent as compared to the previous closing price of Rs 1,624.10 apiece.

Amalgamation

Max Financial Services Ltd has received in-principle board approval for its proposed amalgamation into Axis Max Life Insurance Ltd. The transaction involves Axis group entities holding 19.02% stake in the life insurer. The merger is subject to IRDAI approval and shareholder clearances under the amended insurance laws.

Further, the amalgamation process will now move towards finalising the scheme, share-entitlement ratio, and regulatory approvals. Post-merger, shareholders of MFSL will receive shares in Axis Max Life Insurance.

About Axis Max Life Insurance

Axis Max Life Insurance is one of India’s leading private life insurers, serving over 50 million customers with a strong presence across 300+ offices nationwide. The company offers protection, savings, and retirement solutions, supported by a robust distribution network. It reported strong growth momentum and maintains a high individual claim settlement ratio above 99%, reflecting customer trust and operational strength.

Axis Max Life Insurance have strong fundamentals with a 99.70% death claim paid ratio, reflecting high customer trust. The insurer has an individual sum assured of  Rs 21.9 lakh crore and manages  Rs 1.7 lakh crore in assets. Its wide reach spans 405 branches, reinforcing its presence across India.

Financials

The company delivered a weak Q2FY26 performance, with revenue falling sharply by 27% year-on-year to  Rs 9,791.59 crore. Profitability deteriorated significantly, as net profit plunged 96% to just  Rs 5.87 crore, indicating pressure on margins and operating efficiency during the quarter.

Over the last one year, Max Financial Services Ltd saw a sharp compression in operating margins. OPM declined from around 1.29% in Sep 2024 to just 0.21% in Sep 2025, reflecting rising costs and weaker operating leverage. Operating profit also fell significantly, indicating sustained pressure on core profitability.

Max Financial Services Ltd is a leading financial services holding company in India, primarily focused on the life insurance business through its stake in Axis Max Life Insurance. The company plays a key role in long-term savings, protection, and retirement solutions, backed by strong distribution partnerships and a growing customer base.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Insurance stock jumps after board approves amalgamation with Axis Max Life Insurance appeared first on Trade Brains.