Max Life Results Highlights H1 FY23
New Business Premium*: Rs. 3,378 Crore, Up 9%, Proprietary channels grew 23%
Gross Written Premium: Rs. 9,904 Crore, Up 12%.
Embedded Value at Rs. 14,704 Crore; Operating RoEV at 15.7%.
New Business Margin (NBM) at 26.7%, Up 140 bps
Value of New Business at Rs. 586 Crore, Up 7%.
Total Assets Under Management (AUM): Rs. 1,13,152 Crore, Up 13%
Max Financial Services Limited (MFSL) today announced its financial results for the second quarter (Q2) and H1 (first half) of the financial year FY23. In the first half of the FY23, MFSL Consolidated Revenue^ of Rs. 9,720 Crore, with growth of 12% and Consolidated PAT at Rs. 130 Crore, up 56%, due to lower tax expenses than corresponding previous half year. In Q2FY23, Consolidated Revenue^ at Rs. 5,718 Cr, Up 9% and Consolidated PAT at Rs, 62 Cr, Up 29%.
During H1FY23, Max Life New Business Premium* grew 9% to Rs. 3,378 Cr and Annualised Premium Equivalent (APE) Up by 2% to Rs. 2,200 Cr driven by strong growth in proprietary channels. Proprietary channels new business premiums grew by 23% year-on-year to Rs. 773 Crore as result contribution of Proprietary channels to total new sales increased from 29% to 33% in H1FY23. Further, the renewal premium income (including group) rose 14% to Rs. 6,526 Crore, taking the gross written premium to Rs. 9,904 Crore, an increase of 12% over the half year of the previous financial year.
Max Life achieved New Business Margin (NBM) of 26.7% in H1FY23, an increase of 140 bps. Further NBM expanded to 31.4% in Q2FY23, improved 230 bps over corresponding previous quarter mainly driven by increase in product profitability. Value of New Business (VNB) grew by 7% to Rs. 586 Crore in H1FY23. Max Life operating expenses (policyholders) to gross premium ratio improved from 15.5% in H1FY22 to 15.1% in H1FY23 due to effective cost management efforts and higher business growth. Max Life reported an Embedded Value of Rs. 14,704 crore, while the Operating Return on EV (RoEV) over H1FY23 stood at 15.7%.
During H1FY23, Max Life delivered a strong performance, and focus on retirement led to growth of 86% in Annuity business in H1 FY23. Max Life Pension Fund Management Limited commenced business operations in Q2 FY23.
Max Life’s assets under management (AUM) were Rs. 1,13,352 crore as on September 30, 2022, Up 13% over the previous year.
Max Life has secured a new banca partnership with Tamilnad Mercantile Bank (TMB) for term of 5 years. Also entered into partnership agreements with leading brokers such as Turtlemint, Bluechip, NJ Brokers, Muthoot Insurance Brokers and Vkover.
Mr. Mohit Talwar, Managing Director, Max Financial Services Limited, said, “By introducing new innovative products, secular growth across proprietary channels and balance product mix, we have registered a strong growth in H1FY23. Our focus lies in continuous growth through strategic partnerships, accelerate partnership channels growth and improve market share.”
About Max Financial Services Limited
Max Financial Services Limited (MFSL) is part of India’s leading business conglomerate – the Max Group. Focused on Life Insurance, MSFL owns and actively manages an 81.83% majority stake in Max Life Insurance, India’s largest non-bank, private life insurance company.
The company is listed on the NSE and BSE. Besides a 14.7% holding by Analjit Singh and sponsor family, some of the other group shareholders include MSI, Ward ferry, New York Life, GIC, Baron, Vanguard, Jupiter, Blackrock, and the Asset Management Companies of DSP, Nippon, HDFC, ICICI Prudential, UTI, Motilal Oswal, Canara Robeco, Sundaram, Aditya Birla Sun Life, Mirae, and Kotak.
About Max Life Insurance Company
Max Life is the sole operating subsidiary of Max Financial Services Limited. Max Life – a part of the $4-Bn Max Group, an Indian multi-business corporation – is India’s largest non-bank private life insurer and the fourth largest private life insurance company.
On April 6, 2021, A.xis Bank Limited, India’s third-largest private sector bank, together with its subsidiaries Axis Capital Limited and Axis Securities Limited (collectively referred to as “Axis Entities”) became the Co-promoters of Max Life. This was after completion of the acquisition of 12.99% stake collectively by the Axis Entities in Max Life.
Max Life offers comprehensive protection and long-term savings solutions, through its multichannel distribution including agency and third distribution partners. Max Life has built its operations over almost two decades through a need-based sales process, a customer-centric approach to engagement and service delivery and trained human capital. It has 346 branch units across India.
^Excluding Max Life investment income
*New business premium = First year premium + Single premium