Mitsui Sumitomo Insurance has agreed to purchase 26% stake in Max New York Life Insurance for INR27.3bn ($530.13m).

Upon receiving approval from the Indian insurance supervisory authorities, Mitsui Sumitomo Insurance will invest and participate in the management of Max New York Life Insurance and the insurance entity will be renamed as "Max Life Insurance Company".

Max New York Life Insurance is a JV of Max India and New York Life Insurance, with a share ratio of 74% and 26%, respectively.

The stake sell belongs to New York Life Insurance and the company is in Exit India mode after spending 10 years in India and acquiring handsome gain of over 300% on its investment of around INR5050m ($97.91m) for its 26% stake in the JV.

As per the current insurance investment regulation of India, a foreign investor can acquire only 26% in Indian life insurance companies.

The Japanese insurer said that investment in Indian firm is a part of their strategy to strengthen its presence in rapidly growing Asian markets.

The company is already managing its insurance business in Thailand, China, Malaysia and Indonesia, said Mitsui Sumitomo.

Citigroup served as the financial adviser to Mitsui Sumitomo Insurance and the deal will also require approvals from the Insurance Regulatory and Development Authority and the Competition Commission of India.