Axis Max Life Insurance To Discontinue Max Life Pension Fund Management

Axis Max Life Insurance Ltd. is set to wind down wholly owned subsidiary Max Life Pension Fund Management Ltd. in order to avoid brand confusion, according to an exchange filing on Friday.

The Max Financial Services subsidiary took the decision after the recent change in the corporate name from Max Life Insurance to Axis Max Life Insurance and inclusion of the Axis logo in its brand. Axis Bank Ltd. also has an established pension fund management company, Axis Pension Fund Management Ltd.

In order to eliminate such brand related ambiguity, the board of directors decided to discontinue the operations of Max Life PFM and as a point of presence under the applicable regulations issued by Pension Fund Regulatory Development Authority, the filing stated.

"The presence of two separate pension fund management entities with similar branding may result in unintended misinterpretation among the general public and the net promoter score subscribers of both the PFM entities," the company said.

Max Life PFM will wind up its operations after receipt of all the requisite approvals and post payment expenses, debts and statutory dues, the remaining capital will be sent back to the company as its shareholder, it said. "During this transition, we will ensure the continued safety of funds of our NPS subscribers and the said funds shall be dealt in accordance with the applicable regulations and regulatory guidance."

Shares of Max Financial Services fell as much as 1.09% during the day to Rs 1,102 apiece on the National Stock Exchange before the annoucement. It closed 0.73% lower at Rs 1,106.10 apiece, compared to a 0.27% advance in the benchmark Nifty. The share price has risen 15.91% on a year-to-date basis.

Eighteen out of the 20 analysts tracking the company have a 'buy' rating on the stock and two suggest 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 29.3%.