New York Life Insurance in talks to exit India joint venture: report

NEW YORK – New York Life Insurance Co. is in talks to sell its stake in a joint-venture with life insurance company Max India, the Economic Times reported on Wednesday, citing an unnamed source.

There are no firm developments in the joint venture to report, Max India said in response to the report.

The U.S.-headquartered insurer has a close to 26 percent stake in Max New York Life, India’s largest non-banking private insurance company, estimated to be worth around 35 billion rupees ($709 million), the report said.

Around one-third of the sale proceeds would be paid to Max India, it said citing a person familiar with the development.

“As a high performing organization, there is interest shown periodically by potential investors, to participate in our future growth,” Max India said. “However, there is no firm development to report as of date.”

Max India holds a 70 percent stake in the joint venture, and Indian lender Axis Bank owns the remaining 4 percent.

“Our JV is a highly successful operation that provides important insurance products to the people of India. We do not comment on rumours,” a New York Life spokesman was quoted as saying by the newspaper.

Shares in Max India rose as much as 6.4 percent on Wednesday, before closing 4.4 percent higher

Boeing logs big order from Southwest for fuel-efficient planes

(Reuters) – Boeing Co. bagged its first firm order for the new 737 MAX fuel-efficient, narrowbody plane, as part of a $19 billion deal with Southwest Airlines that the jet maker calls its largest order ever.

The order for 208 narrowbody planes includes 150 MAX aircraft and puts Southwest, a loyal Boeing customer, first in line to take delivery of the upcoming revamp of the best-selling 737, which will feature a new energy-efficient engine.

The order reflects robust demand for fuel-efficient planes as the airline industry struggles to rebound from a painful downturn and cope with volatile oil prices. The Southwest deal is also one of the last major aircraft orders up for grabs from U.S. carriers looking to replace aging models.

“It’s been a very good year for orders, really driven by the re-engined platforms for Airbus and Boeing,” said Peter Arment, an aerospace and defense analyst with Sterne, Agee & Leach. “We do expect that to continue in 2012.”

He said Boeing would likely garner more orders for its 737 MAX from existing customers, and noted the company was currently competing with chief rival Airbus for an order from United Continental Holdings, the world’s largest carrier.

Delta Air Lines ordered 737-900ER 100 Next-Generation extended-range 737 planes in August, following a giant order in July from now-bankrupt American Airlines for 460 single-aisle jets worth up to $40 billion, an order Boeing split with Airbus.

The MAX orders, combined with a strong existing backlog for other 737 models, will allow Boeing to raise production rates to record levels on one of its most profitable plane programs, Arment said.

“Longer term, it’s going to help generate some additional earnings power for the company,” Arment added.

Boeing reported commitments for 948 MAX airplanes and said the figure could climb to 1,500 by the end of next year. It said the Southwest deal was its largest firm order ever in dollar value and the number of airplanes.

Private Indonesian carrier Lion Air last month placed an order for 230 planes, including 201 of the MAX that Boeing said at that time was its largest order, but those orders were not firm.

“It truly is Christmas come early for the Boeing Co,” Jim Albaugh, Boeing’s chief executive for commercial planes, told a press briefing held in Dallas to announce the Southwest order.