Japan's MS&AD is planning to acquire New York Life's stake in an India-based joint venture that it operates with Max India.

New York Life's 26 per cent stake in the joint venture will be sold to MS&AD for about $ 530 million, according to reports. The MS&AD Insurance Group is Japan's largest property-casualty insurer by revenue and is undergoing an aggressive expansion through acquisitions in Asia.

The company is aiming to acquire both life and non-life assets to maintain growth despite a slow home market in Japan. The company had acquired a 50% stake in Indonesia's PT Asuransi Jiwa Sinarmas for about 67 billion yen about a year ago.

The Mitsui Sumitomo Insurance, which is one its core units, has entered into a deal to acquire stake in Max New York Life venture, the company said in a statement. Under the Indian laws, a foreign company is permitted to acquire only upto 26 per cent stake in Indian life insurance companies.

The Max New York Life venture is the largest non-banking private insurance company in India and had gross insurance premiums of Rs 5,810 crore and pre-tax shareholder income of Rs 194 crore for the year till March 2011.

On the other hand, the move shows a pull back for New York Life from Asia following the sale of business by the American company in China, Thailand, South Korea and Hong Kong.