Axis Bank becomes a co-promoter of Max Life

Axis Bank becomes a co-promoter of Max Life

  • Axis Entities will own 12.99% stake in Max Life
  • Max Life’s Board to be recast with three Axis nominees
  • Axis Entities have right to acquire another 7% in Max Life

April 6, 2021 – New Delhi

Axis Bank Limited (“Axis Bank”), India’s third largest private sector bank, together with its subsidiaries Axis Capital Limited and Axis Securities Limited (collectively referred to as “Axis Entities”) have become the co-promoters of Max Life Insurance Company Limited (“Max Life”), after completion of the acquisition of 12.99 % stake collectively by the Axis Entities in India’s fourth largest private life insurance firm – Max Life. The Board of Max Life recorded the closure of the deal today.

The transaction was completed after the Insurance Regulatory and Development Authority of India (IRDAI) gave its formal approval in February this year. Max Life’s holding company Max Financial Services Limited (“MFSL”) and Axis Bank had first announced their intent to bring in the latter as a strategic partner in Max Life in February 2020.

Transaction

Axis Bank and its two subsidiaries—Axis Capital Limited and Axis Securities Limited collectively own 12.99% stake in Max Life after the consummation of the deal. The Axis Entities have a right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, subject to regulatory approvals.

With the conclusion of this transaction, Max Life’s Board will be strengthened further, with co-option of three nominee directors of Axis Entities on its Board.

Amitabh Chaudhry, Managing Director & CEO, Axis Bank said: “We are delighted to see the strategic partnership come through. Axis Bank has been a long-term partner to Max Life and together we have contributed to deepening insurance penetration in India over the last decade. We have the opportunity now to shape the future of the industry through continued leadership in products, technology, and customer centricity. We are confident this venture will enhance the value for all the stakeholders of Axis Bank and Max Life.”

Welcoming this long-awaited strategic development, Analjit Singh, Chairman of Max Group and Max Financial Services, said, “The conclusion of this transaction is truly a monumental milestone, which will bring added strength to Max Life and help it chart a new growth trajectory by combining the forces of the third largest private bank in India with the fourth largest private life insurer in the country.

We are again privileged to welcome another sterling name to Max’s history of storied partners. Throughout our decade-long business association, Axis Bank has exhibited value across customer insights, distribution expertise and a myriad of functional benefits which will be of great benefit to our business.”

Subrat Mohanty, Group Executive, Banking Operations & Transformation, Axis Bank, said, “We have a long-term commitment to build a strong insurance distribution platform for our customers. This deal is an affirmation of that commitment. Max Life is a well-managed professional organization with a stellar track record. We are excited to enter into this new phase in our partnership with them.”

Mohit Talwar, Managing Director, Max Financial Services, said, “With the conclusion of this deal between Max Life and Axis Bank, we are ready and equipped to integrate the synergies of the two players and commence a relationship that will cement Max Life’s position as a top quartile life insurer delivering sustainable and profitable growth.”

Prashant Tripathy, Managing Director & CEO, Max Life Insurance, added, “This closure marks a new phase of growth and stability for Max Life. The JV enhances our brand in the eyes of our customers, business partners and investors by integrating the resources and benefits that the two players bring. This development is also a reflection of the relentless efforts put in over the years by the Max Life team. We are looking forward to entering this promising era for Max Life with utmost fervor and dedication.”

Axis Bank has shared a successful business relationship with Max Life for over a decade, providing long-term saving and protection products to nearly 20 lakh customers. The total premium generated through this alliance has aggregated to over Rs. 40,000 crores. Both companies have invested extensively in product and need-based sales training, thereby leading to a consistent increase in productivity.

Max Life has been consistently outperforming the private industry. Its asset under management (AUM) grew by 23% YoY and reached Rs 84,724 crore as on 31st December 2020, which has more than doubled in less than 4 years. In the last four years (FY 16 –20), its Individual Adjusted New Sales registered a compounded annual growth rate (CAGR) of 18%. In the first 11 months of last fiscal FY 21, Max Life has outperformed the top three private players with YoY Individual Adjusted New Sales growth of 14%.

About Axis Bank:

Axis Bank is the third largest private sector bank in India. It offers the entire spectrum of services to customer segments covering Large and Mid-Corporates, SME, Agriculture and Retail Businesses. With its 4,568 domestic branches (including extension counters) and 11,629 ATMs across the country as on 31st December 2020, the Axis Bank network spreads across 2,521centers, enabling the Bank to reach out to a large cross-section of customers with an array of products and services. The Axis Group includes Axis Mutual Fund, Axis Securities Ltd., Axis Finance, Axis Trustee, Axis Capital, A.TReDS Ltd., Freecharge and Axis Bank Foundation.

For further information on Axis Bank, please refer to the website: https://www.axisbank.com

About Max Financial Services Limited:

Max Financial Services Limited (MFSL) is part of the leading business conglomerate – the Max Group. Focused on Life Insurance, MSFL owns and actively manages an 81.8% stake in Max Life Insurance, India’s largest non-bank, private life insurance company. MFSL earned a revenue of Rs. 18,242 crore in FY20. The Company is listed on the NSE and BSE. Besides a 17.3% holding by Analjit Singh sponsor family, some other shareholders include Mitsui Sumitomo, Ward Ferry, New York Life, Baron, Vanguard, First Voyager, Jupiter, Blackrock and the Asset Management Companies of Reliance, HDFC, ICICI Prudential, Motilal Oswal, Aditya Birla Sun Life, Mirae, and Kotak.

About Max Life:

Launched in 2000, Max Life is a Joint Venture (JV) is the sole operating subsidiary of Max Financial Services Limited. Max Life is India’s largest non-bank private life insurer and the fourth largest private life insurance company, with gross premium of ₹ 16,184 Cr., a Claims Paid Ratio of 99.22%, a Market-Consistent Embedded Value (MCEV) of ₹ 9,977 Cr., and a sum assured of ₹ 9,13,660 Cr., with a total of 269 branch units across India as of March 31, 2020.

Press contact:

Axis Bank

Piyali Reddy
[email protected]
+91 9322657983

Mittal Solanki
[email protected]
+91 9004909465

Brijesh Kutty
[email protected]
+91 9920460901

Max Financial Services

Nitin Thakur
[email protected]
+91 9873347428

Vaishali Gauba
[email protected]
+91 9873140991

IRDAI approvesAxis Entities’ stake acquisition in Max Life Insurance
Axis to become a Joint Venture partner in Max Life insurance

24thFeb 2021 – New Delhi

Max Financial Services Limited (MFSL) announced today that the Insurance Regulatory and Development Authority of India (IRDAI) has given its formal approval for the acquisition of up to 12% stake in Max Life Insurance Company (Max Life) by Axis Bank and its subsidiaries, Axis Capital Limited & Axis Securities Limited (together Axis Entities).

The IRDAI approval was an integral step in this long-awaited joint venture transaction which was first announced in April 2020.

As per the proposed transaction, Axis Entities have the right to acquire upto 19% stake in Max Life, of which, Axis Bank proposes toacquire up to 9%, and Axis Capital Limited and Axis Securities Limited together propose to acquire up to 3% of the share capital of Max Life in the first leg of the transaction. In addition, Axis Entities have the right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, which they intend to acquireover the course of the next few years.

Welcoming the development, Analjit Singh, Chairman of Max Group and Max Financial Services, said, “We have been looking forward to bringing Axis Bank in this construct as a joint venture partner in Max Life. Our long and successful business association with them has demonstrated to us their value across customer insights, distribution expertise and other functional benefits which will be highly useful for the business.

I am confident that this joint venture will strengthen our position as a top leader in the Indian Life Insurance sector which is showing clear indications of rapid and enduring growth.”

Commenting on the approval, Mohit Talwar, Managing Director, Max Financial Services. who has led the transaction, said,“We are delighted to get this much awaited approval from IRDAI. This is a welcome culmination of all the efforts we have put in to create this value accretive partnership for both companies.

Since all other regulatory, shareholder and Board approvals are already in place, we will now progress towards swift conclusion of this transaction. We hope we will be able to make quick progress in harnessing the synergies and benefits from this joint venture between Max Life and Axis Entities.” A similar endorsement was made by Prashant Tripathy, Managing Director & CEO of Max Life Insurance.

Max Life is the fourth largest private life insurer in India while Axis Bank is the third largest private bank. The two companies have shareda successful business relationship for over a decade, providing long-term saving and protection products to nearly20 lakh customers. The total premium generated through this relationship has aggregated to over Rs. 40,000 crores. Both companies have invested extensively in product and need-based sales training, thereby leading to consistent increase in productivity.

About Max Financial Services Limited:

Max Financial Services Limited (MFSL) is part of the leading business conglomerate – the Max Group. Focused on Life Insurance, MSFL owns and actively manages a 93.1% stake in Max Life Insurance, India’s largest non-bank, private life insurance company. MFSL earned a revenue of Rs. 18,242 crore in FY20. The Company is listed on the NSE and BSE. Besides a 17.3% holding by Analjit Singh sponsor family, some other shareholders include Mitsui Sumitomo, Ward Ferry, New York Life, Baron, Vanguard, First Voyager, Jupiter, Blackrock and the Asset Management Companies of Reliance, HDFC, ICICI Prudential, Motilal Oswal, Aditya Birla Sun Life, Mirae, and Kotak. In April 2020, MFSL announced its intent to bring in India’s third largest private bank, Axis Bank as a JV partner for its life insurance business Max Life.

Press contact:

Nitin Thakur
[email protected]
+91 9873347428

Vaishali Gauba
[email protected]
+91 9873140991

Max Financial Services Ltd. Consolidated Revenue1 up 68% to Rs. 8,990 Cr., PAT up 54% to Rs. 227 Cr. in Q3 FY21

 

Subsidiary Max Life reports Individual Adjusted Sales growth of 21% in Q3 FY21
Maintains private market leadership with share of 11% and VNB growth of 37% in 9M FY21

Max Life Results Highlights (9MFY21):

  • Value of New Business stood at Rs. 788 Cr.; grew 37%
  • New Business Margin expanded by 490 bps to 25.9%
  • Assets Under Management at Rs. 84,724 Cr.; grew 23% YoY
  • Embedded Value at Rs. 11,723 Cr., Operating RoEV ~18%

9th February 2021, New Delhi

Max Financial Services Ltd. (MFSL) today announced its financial results for the quarter ended December 31st, 2020. In Q3 FY21, MFSL’s consolidated revenues were at Rs. 8,990 Cr., growing 68% year-on-year due to higher investment income. Consolidated PAT grew 54% to Rs. 227 Cr.

In Q3 FY21, MFSL’s sole subsidiary Max Life reported Gross written premium of Rs. 4,629 Cr, up 19% over the previous year. Shareholders’ PAT of Rs. 220 Cr, up 43% over the previous year, was due to higher investment income and reserve release due to hedging of in-force Protection business.

For the nine months ended December 31st, 2020, Max Life reported a Market-Consistent Embedded Value (MCEV) of Rs. 11,723 Cr., with an Operating Return on Embedded Value (RoEV) of nearly 18%. The Value of New Business (VNB) written during 9MFY21 was Rs. 788 Cr., growing 37% year-on-year, due to shift in the product mix towards NPAR savings and protection products. New Business Margin (NBM) of 25.9% expanded by 490 bps over last year. Focus on Protection growth continued with 54% retail growth, and penetration increased to 10% in 9M FY21 compared to 8% in 9M FY20. Renewal Premium grew 16% to Rs. 7,669 Cr. In this period, Max Life’s Assets under Management (AUM) stood at Rs. 84,724 Cr., growing 23% year-on-year.

Individual adjusted sales were recorded at Rs. 1,2106 Cr in Q3 FY21, being 21% higher than last year, spurred by a 27% growth in Bancassurance channel sales, which in turn was a result of a 32% increase in Axis Bank sales. Proprietary channels sales grew by 9% in Q3 FY21, led by Agency performance growth. E-commerce channel grew by 54% year-on-year due to protection tailwinds, leading claims paid ratio and a competitive price.

Mr. Mohit Talwar, Managing Director, Max Financial Services, said, “MFSL has had a solid quarter with our subsidiary Max Life registering impressive VNB and Individual Adjusted Sales. This has been a consequence of a consciously diverse product mix wherein Non-Par and Protection products continue to lead in sales growth and margin expansion. Our business apparatus, which was rapidly digitized as a result of a global pandemic, has played a significant role in helping Max Life continue its progression despite COVID headwinds. In fact, we gained 158 bps to maintain our private market share at nearly 11%.”

“This quarter, we have also been happy to move a step closer to the conclusion of our much-anticipated deal with Axis Bank, with a CCI approval for 12% stake acquisition in Max Life by the bank and its subsidiaries, Axis Capital Limited & Axis Securities Limited. We are now waiting for IRDAI’s decision. Our focus in the upcoming year will be set on bringing the deal to closure as well as on furthering our digitisation agenda with equal attention to expanding proprietary sales and boosting persistency through increased renewals and collection rates,” he added.

About Max Financial Services Limited:

Max Financial Services Limited (MFSL) is part of the leading business conglomerate – the Max Group. Focused on Life Insurance, MSFL owns and actively manages a 93.10% stake in Max Life Insurance, India’s largest non-bank, private life insurance company. MFSL earned a revenue of Rs. 18,242 Cr. in FY20. The Company is listed on the NSE and BSE. Besides a 17.3% holding by Analjit Singh sponsor family, some other shareholders include MSI, Ward ferry, New York Life, Baron, Vanguard, First Voyager, Jupiter, Blackrock, and the Asset Management Companies of Nippon, HDFC, ICICI Prudential, Motilal Oswal, Aditya Birla Sun Life, Mirae, and Kotak. In April 2020, MFSL announced its intent for a strategic deal with India’s third largest private bank, Axis Bank for acquisition of up to 19% stake in Max Life by the bank and its subsidiaries, Axis Capital Limited & Axis Securities Limited (together Axis Entities).

About Max Life Insurance Company:

Max Life Insurance Co. Ltd. (“Max Life”) is a joint venture between Max Financial Services Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max Financial Services Ltd. is a part of the Max group, an Indian multi business corporation, while Mitsui Sumitomo Insurance is a member of MS&AD Insurance group.

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 need-based sales process, a customer-centric approach to engagement and service delivery and trained human capital.
In April 2020, Max Life announced a strategic deal with India’s third largest bank – Axis Bank for acquisition of up to 19% stake in Max Life by the bank and its subsidiaries, Axis Capital Limited & Axis Securities Limited (together Axis Entities).

During the financial year 2019-20, Max Life achieved gross written premium of Rs. 16,184 Cr. As on March 31, 2020 the Company had Rs. 68,471 Cr. of Assets Under Management (AUM) and a Sum Assured in Force of Rs. 913,660 Cr.

For more information, please visit the company’s website at WWW.MAXLIFEINSURANCE.COM

 

Press contact:

Nitin Thakur
[email protected]
+91 9873347428

Vaishali Gauba
[email protected]
+91 9873140991

IRDAI approves swap of Mitsui Sumitomo’s Max Life stake with its listed parent Max Financial Services

 

28th Nov 2020 – New Delhi

Max Financial Services Limited (MFSL) announced that Insurance Regulatory and Development Authority of India (IRDAI) has approved the proposed transfer of 39,47,75,831 equity shares constituting 20.57% of the paid-up equity share capital of Max Life Insurance Company Limited (Max Life) held by Mitsui Sumitomo Insurance Company Limited (“MSI”) to MFSL in exchange for issuance of 7,54,58,088 Equity shares of MFSL, constituting 21.87% of issued and paid-up share capital of MFSL (Share Swap Transaction).

MFSL will now proceed for the implementation of the Share Swap Transaction, which will entail swapping by MSI of its 20.57% stake in Max Life with a 21.87% stake in MFSL by way of issue and allotment of 7,54,58,088 equity shares of Rs. 2/- each at a price of Rs. 565.11 per equity share on a preferential allotment basis.

Upon consummation, this will effectively result in MFSL’s stake in Max Life increasing to 93.10%. Presently, MFSL holds a 72.5% stake in Max Life and MSI owns 25.5% stake.

Earlier on November 19, 2020, MFSL had disclosed that it has received approval from Department of Economic Affairs (DEA), Ministry of Finance for the aforesaid transaction and that the transaction will be consummated upon receipt of approval from IRDAI.

Commenting on the development, Mohit Talwar, MD, Max Financial and Vice Chairman, Max Group, said, , “IRDAI’s approval is a very important milestone for the implementation of our Share Swap transaction. We will work to close the transaction as soon as possible.”

MFSL had recently announced that Axis Bank and its subsidiaries, Axis Capital Limited & Axis Securities Limited (together Axis Entities), have entered into agreements with MFSL for acquisition of up to 19% stake in Max Life, in accordance with existing laws and regulations.

Max Life is the fourth largest private life insurer in India while Axis Bank is the third largest private bank. The two companies have had a successful business relationship for over a decade, providing long term saving and protection products to nearly 20 lakh customers. The total premium generated through this relationship has aggregated to over Rs. 40,000 crore. Both companies have invested extensively in product and need-based sales training, thereby leading to consistent increase in productivity.

About Max Financial Services Limited:

Max Financial Services Limited (MFSL) is part of the leading business conglomerate – the Max Group. Focused on Life Insurance, MSFL owns and actively manages a 72.5% stake in Max Life Insurance, India’s largest non-bank, private life insurance company. MFSL earned a revenue of Rs. 18,242 crore in FY20. The Company is listed on the NSE and BSE. Besides a 22.% holding by Analjit Singh sponsor family, some other shareholders include KKR, Ward ferry, New York Life, Baron, Vanguard, Aberdeen, First Voyager, Jupiter, Blackrock and the Asset Management Companies of Reliance, HDFC, ICICI Prudential, Motilal Oswal, Aditya Birla Sun Life, Mirae, and Kotak. In April 2020, MFSL announced its intent to bring in India’s third largest private bank, Axis Bank as a JV partner for its life insurance business Max Life.

 

Press contact:

Nitin Thakur
[email protected]
+91 9873347428

Vaishali Gauba
[email protected]
+91 9873140991

DEA approves swap of Mitsui Sumitomo’s Max Life stake with its listed parent Max Financial Services

 

19th Nov 2020 – New Delhi

Max Financial Services Limited (MFSL) announced that it has received approval from the Department of Economic Affairs (DEA), Ministry of Finance for the issue and allotment of 7,54,58,088 equity shares of Rs. 2/- each (equivalent to 21.87% of the paid-up share capital) of MFSL to Mitsui Sumitomo Insurance Company (MSI).

This preferential issuance is in consideration for the transfer of equity shares constituting 20.57% of the paid-up share capital of Max life Insurance Company Limited (Max Life) held the by MSI to MFSL as part of the Share Swap Transaction. The transaction will be consummated upon receipt of approval from Insurance Regulatory and Development Authority of India (IRDAI).

Max Financial Services presently holds a 72.5% stake in Max Life and MSI owns 25.5% stake.

In essence, the aforesaid transaction entails swapping by MSI of 20.6% stake that it holds in Max Life with a 21.9% stake in MFSL This will result in MFSL’s stake in Max Life increasing to 93.10%

Commenting on the development, Mohit Talwar, MD, Max Financial and Vice Chairman, Max Group, said, “Once concluded post regulatory approvals, this transaction will mark an important step for Max Financial to consolidate its shareholding in Max Life paving the way for a new beginning in form of a joint venture with Axis Bank.”

MFSL had recently announced that Axis Bank and its subsidiaries, Axis Capital Limited & Axis Securities Limited (together Axis Entities), have entered into agreements with Max Financial for acquisition of up to 19% stake in Max Life, in accordance with existing laws and regulations.

Max Life is the fourth largest private life insurer in India while Axis Bank is the third largest private bank. The two companies have had a successful business relationship for over a decade, providing long term saving and protection products to nearly 20 lakh customers. The total premium generated through this relationship has aggregated to over Rs. 40,000 crore. Both companies have invested extensively in product and need-based sales training, thereby leading to consistent increase in productivity.

About Max Financial Services Limited:

Max Financial Services Limited (MFSL) is part of the leading business conglomerate – the Max Group. Focused on Life Insurance, MSFL owns and actively manages a 72.5% stake in Max Life Insurance, India’s largest non-bank, private life insurance company. MFSL earned a revenue of Rs. 18,242 crore in FY20. The Company is listed on the NSE and BSE. Besides a 22.% holding by Analjit Singh sponsor family, some other shareholders include KKR, Ward ferry, New York Life, Baron, Vanguard, Aberdeen, First Voyager, Jupiter, Blackrock and the Asset Management Companies of Reliance, HDFC, ICICI Prudential, Motilal Oswal, Aditya Birla Sun Life, Mirae, and Kotak. In April 2020, MFSL announced its intent to bring in India’s third largest private bank, Axis Bank as a JV partner for its life insurance business Max Life.

 

Press contact:

Nitin Thakur
[email protected]
+91 9873347428

Vaishali Gauba
[email protected]
+91 9873140991

Max Financial Services Revenue1 up 50% to Rs. 7,020 Cr., PAT up 26% to Rs. 81 Cr. in Q2 FY21

Subsidiary Max Life reports Individual Adjusted Sales growth of 4%; attains decade high private market share of 11% and VNB growth of 20%

Max Life Results Highlights (H1 FY21):

  • Value of New Business stood at 438 Cr., grew 20%. New Business Margin expanded by 320 bps to 24.2%,
  • Assets Under Management: 77,764 Cr.; grew 19%
  • Embedded Value at Rs. 11,047 Cr., Operating RoEV 5%

30th October 2020, New Delhi

Max Financial Services Ltd. (MFSL) today announced its financial results for the quarter and half year ended September 30th, 2020. In Q2 FY21, MFSL’s consolidated revenues1 were at Rs. 7,020 Cr., growing 50% year-on-year due to higher investment income. Consolidated PAT1 grew 26% to Rs. 81 Cr. due to reversal of impairment loss on investments.

In Q2 FY21, Max Life reported Shareholders’ PAT of Rs. 26 Cr., down 70% over the previous year due to a higher new business strain owing to higher non-par and protection sales, partially offset by higher investment income. This shift also boosted New Business Margins and Value of New Business.

Max Life gained 162 bps to reach a private market share of 11% in H1FY21, which was the highest in last 10 years in H1. Max Life reported a Market-Consistent Embedded Value (MCEV) of Rs. 11,047 Cr., in H1 FY21, with an Operating Return on Embedded Value (RoEV) of 17.5%. The Value of New Business (VNB) written during H1 FY21 was Rs. 438 Cr., growing 20% year-on-year and New Business Margin (NBM) stood at 24.2%, expanded by 320 bps over last year, arising from shift in product mix towards NPAR- Savings and protection products. Individual protection grew by 78% year-on-year and penetration increased to 12% in H1FY21 compared to 7% in H1FY20. Renewal Premium grew 16% to Rs. 4,789 Cr. In this period Max Life’s Assets under Management (AUM) stood at Rs. 77,764 Cr., growing 19% year-on-year.

Max Life’s Individual APE for Q2FY21 were recorded at Rs. 1,144 Cr., grew 10%, driven by Bancassurance sales growth of 19%. E-commerce channel grew by 68% year-on-year due to protection tailwinds, leading claims paid ratio and a competitive price. In fact, Max Life maintained a leadership position in direct website purchase and web aggregators.

Mr. Mohit Talwar, Vice Chairman, Max Group & Managing Director, Max Financial Services, said, “Despite the prolonged headwinds caused by a global pandemic, Max Life has clocked in an overall growth of 4%, with an impressive surge in its e-commerce sales and those in bancassurance. This further solidifies our focus on bolstering our digital channels while we build up sales in our proprietary and agency channels. The Company also continues to maintain its top position among competitors with an unprecedented 11% private market share – the highest in the last decade.”

[1] Consolidated numbers have been reported basis IndAS

2 Max Life numbers are reported on IGAAP basis and Revenue excludes Unit linked Investment Income

About Max Financial Services Limited:

Max Financial Services Limited (MFSL) is part of the leading business conglomerate – the Max Group. Focused on Life Insurance, MSFL owns and actively manages a 72.52% stake in Max Life Insurance, India’s largest non-bank, private life insurance company. MFSL earned a revenue of Rs. 18,242 crore in FY20. The Company is listed on the NSE and BSE. Besides a 22.3% holding by Analjit Singh sponsor family, some other shareholders include KKR, Ward ferry, New York Life, Baron, Vanguard, Aberdeen, First Voyager, Jupiter, Blackrock and the Asset Management Companies of Reliance, HDFC, ICICI Prudential, Motilal Oswal, Aditya Birla Sun Life, Mirae, and Kotak. In April 2020, MFSL announced its intent to bring in India’s third largest private bank, Axis Bank as a JV partner for its life insurance business Max Life.

About Max Life Insurance Company:

Max Life Insurance Co. Ltd. (“Max Life”) is a joint venture between Max Financial Services Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max Financial Services Ltd. is a part of the Max group, an Indian multi business corporation, while Mitsui Sumitomo Insurance is a member of MS&AD Insurance group.

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 need-based sales process, a customer-centric approach to engagement and service delivery and trained human capital.

In April 2020, Max Life announced a strategic deal with India’s third largest bank – Axis Bank to become a JV partner in the life insurance company.

During the financial year 2019-20, Max Life achieved gross written premium of Rs. 16,184 Cr. As on March 31, 2020 the Company had Rs. 68,471 Cr. of Assets Under Management (AUM) and a Sum Assured in Force of Rs. 913,660 Cr.

For more information, please visit the company’s website at www.maxlifeinsurance.com

 

Press Contact:

Nitin Thakur

+91 9873347428

[email protected]

Vaishali Gauba

+91 9873140991

[email protected]

Mohit Talwar completes tenure as Max Group Vice Chairman.

Tara Singh Vachani becomes Vice Chairperson, Max India. Rajit Mehta to become MD, Max India

  • Mohit Talwar to continue as MD, Max Financial Services for another year
  • Tara Singh Vachani to transition to Vice Chairperson role effective today
  • Rajit Mehta’s role as MD, Max India to be effective Jan.15, 2021

28th October 2020, New Delhi

India’s leading multi-business conglomerate Max Group announced today that its Vice Chairman Mohit Talwar, who is approaching retirement age, will relinquish his role as Vice Chairman, Max Group and Managing Director, Max India – the Group’s holding company for its senior care business – effective January 15th, 2021. He will also step off the Boards of Max Ventures & Industries and Antara during first quarter of calendar year 2021.

Mohit Talwar will continue, however, as the Managing Director of Max Financial Services Limited (MFSL), the listed parent company of Max Life, for another year, to provide continuity to the key initiatives that are currently underway. He will also remain on the Board of Max Life and Max India, as a Non-Executive Director.

During his tenure, Mohit has led multiple fronts such as effective alignment with Max Group’s valued joint venture partners; progressing new business opportunities organically and inorganically; optimising capital management & treasury, and managing investors. He has successfully leveraged his strong relationships with institutional investors, hedge funds, banks, and private equity firms to play a central role in planning and has been the key person for complex corporate transactions across the Group. To accomplish all this, he brought to bear his wealth of experience in Corporate Finance and Investment Banking from his 24 years in Wholesale Banking with Standard Chartered, ANZ Grindlays and Bank of Nova Scotia.

Tara Singh Vachani, Executive Chairperson, Antara will be elevated to the position of Vice Chairperson, Max India effective today, while Rajit Mehta, CEO & MD, Antara, will be taking on the responsibility of Managing Director, Max India, from January 15th, 2021. They both will also continue to manage their existing roles and responsibilities.

Tara has played an instrumental role in charting the future of the Group, by foraying into the high-potential sunrise senior living sector over a decade ago. She started with developing and operating Antara’s first community in Dehradun and now as its Executive Chairperson, has been steering the company’s transformation into a platform providing multiple senior care services and solutions. During her professional career, Tara’s compassionate leadership has won her many recognitions. The recent ones include her being named one of World Economic Forum’s Young Global Leaders and the Economic Times 40 under 40 leaders in 2019.

Rajit has been a founder member of Max Life and eventually its Chief Operating Officer. He was instrumental in helping the company become the largest non-bank owned private life insurer in India. He also led Max Healthcare (MHC) to scale and profitability as its MD & CEO for 5 years. He also supported and integrated two major acquisitions at MHC and seeded several alternate business models.

Analjit Singh, Chairman, Max Group, said “One of the defining characteristics of long-enduring organizations is how they manage both continuity and transition of top leadership. This factor has played a central role in Max Group’s longevity spanning over three decades. Our top leaders have enjoyed long tenures at the Group and have grown professionally through the years as the Group progressed and expanded.

With 13 years at the Max Group, of which the last 8 years have been in the managing directorship position, Mohit epitomizes this complementary evolution of both the organization and its leader. His intent of handing over his responsibility in a phased manner is driven by his desire to ensure a seamless transition in the Group to which he has given so much of his time and effort.”

He further said, “In Tara and Rajit, we have the Max Group’s tenured top leaders. For Tara, Max India Vice Chairpersonship will be familiar grounds since she has been on the Board of Max India from Jan ’16. For Rajit, the Max India MD position complements the key position he already holds as the MD & CEO of its flagship business Antara. The additional role will allow him to align the interest of Max India and the strategic business choices of Antara. I have high conviction that this succession planning will ensure resilience and longevity, traits most in demand in the uncertain post-pandemic world.”

About Max Group:

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance industry and has ventured into high potential sectors of Senior Care and Real Estate. The Group recorded consolidated revenues of ~Rs. 19,800 Cr. in FY2020. It has a total customer base of ~4 million, around 400 offices spread across India and an employee strength of more than 16,000 as on 31st March 2020.

The Max Group comprises three holding companies – Max Financial Services and Max Ventures & Industries and Max India, which are listed on the Indian stock exchanges.

The Group’s investor base includes marquee global financial institutions such as New York Life, KKR, IFC Washington, Baron, Vanguard, Ward Ferry, Briarwood Capital, Locus Investments, Nomura, First State Investments, Blackrock, First Voyager, Eastspring, Target Asset Management, Jupiter, Habrok and Doric Capital.

 

Press Contact:

Nitin Thakur

+91 9873347428

[email protected]

Vaishali Gauba

+91 9873140991

[email protected]

Max Financial Services Reports 235% Growth in Q1 FY21 PAT1, backed by subsidiary Max Life’s Strong Performance

Consolidated Revenues1 at Rs. 5,517 Cr. in Q1 FY21, grew 40%, Consolidated PAT1 at Rs. 182 Cr., grew 235%

Max Life Results Highlights (Q1 FY21):

  • Individual APE: 660 Cr., gained market share by 217 bps to 11%
  • Value of New Business stood at 113 Cr., New Business Margin was 17%
  • Assets Under Management: 73,239 Cr.; grew 15%
  • Embedded Value at Rs. 10,670 Cr., Operating RoEV 16%

30th July 2020, New Delhi

Max Financial Services Ltd. (MFSL) today announced its financial results for the quarter ended June 30th, 2020. In Q1 FY21, MFSL’s consolidated Profit after Tax grew 235% to Rs. 182 Cr. backed by strong performance of its life insurance subsidiary Max Life Insurance. Consolidated revenues were at Rs. 5,517 Cr., growing 40% year-on-year.

Max Life reported Shareholders’ Profit after Tax of Rs. 171 Cr., growing 151% over the previous year. The growth in profits was aided by higher investment income, lower claims, and tax refunds. Max Life’s total revenues2 of Rs. 3,616 Cr. grew 2% in Q1 FY21.

Despite an impact on new sales due to Covid-19 towards the end of FY2020, Max Life picked up momentum in Q1 FY21 and gained market share by 217 bps to 11%. Max Life ranked fourth amongst all private life insurers. The individual protection penetration saw a 103% increase in the first quarter, indicating that every second policy sold was a protection policy. In the same period, Individual New Business sum assured grew by 39%.

Max Life’s Individual APE was recorded at Rs. 660 Cr. in Q1 FY21 despite headwinds due to
Covid-19. This was driven by a growth of 8% in proprietary channels, 5% in agency channels, and 31% in e-commerce. This reflects the industry outperformance in Individual APE. Private players de-grew by 23% whereas Max Life de-grew by only 4%.

Max Life reported a Market-Consistent Embedded Value (MCEV) of Rs. 10,670 Cr., with an Operating Return on Embedded Value (RoEV) of 16%. The Value of New Business (VNB) written during Q1 FY21 was Rs. 113 Cr., while New Business Margin stood at 17%. In this period, Max Life’s Assets under Management (AUM) stood at Rs. 73,239 Cr., growing 15% year-on-year.

Max Life was also named as the only Insurer (Life, General or Health) in the ‘Top 100 Best Companies to Work For’ survey for India conducted jointly by the Great Place to Work (GPTW) Institute and the Economic Times. Max Life was the 24th best employer overall, progressing 11 ranks from its last year’s position. The recognition marked the fourth consecutive year of Max Life’s representation being ranked one of top 50 companies in GPTW’s best workplaces league table.

Mr. Mohit Talwar, Vice Chairman, Max Group & Managing Director, Max Financial Services, said, “Max Life has rebounded commendably, outpacing the competition with its growth. This has been possible due to the emphasis on strengthening digital channels, which has allowed Max Life to function remotely almost entirely from sales to customer on-boarding, and after-sales. The company has successfully invested in product innovations to capture emerging opportunities by creating a balanced product mix of traditional savings cum protection plans, unit linked plans, and pure protection products.”

“We are currently in the process of coordinating regulatory approvals for the Max Life-Axis Bank JV that we announced in April 2020. The proposed JV will set Max Life up well for its next stage of growth”, he added.

 

Note to the Editor

The EV of a life insurance company comprises two key elements — a) Net Asset Value or the Net Worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and b) the Present Value of the company’s future expected profits from its existing business portfolio as at the date of valuation.

Max Life had transitioned its EV calculation to a Market Consistent methodology from the earlier traditional approach (Traditional Embedded Value – TEV) in FY2015. This follows the market practice in developed markets, where life insurers have moved to adopt market consistent methodologies.

A market consistent methodology approach better reflects the embedded value of an insurance company by explicitly and specifically allowing for insurance and economic risks rather than using an implicit overall allowance for risks through a Risk Discount Rate (RDR) in the traditional approach. In addition, the market-consistent approach is more objective where asset and liability cash flows are valued using assumptions consistent with those applied to similar cash flows in the capital markets, thus more accurately reflecting the health of the business.

 

Max Financial Services Limited:

Max Financial Services Limited (MFSL) is part of the leading business conglomerate – the Max Group. Focused on Life Insurance, MSFL owns and actively manages a 72.52% stake in Max Life Insurance, India’s largest non-bank, private life insurance company. MFSL earned a revenue of Rs. 18,242 crore in FY2020. The Company is listed on the NSE and BSE. Besides a 28.3% holding by Analjit Singh sponsor family, some other shareholders include KKR, New York Life, Baron, Vanguard, Aberdeen, First Voyager, Jupiter and the Asset Management Companies of Reliance, HDFC, ICICI Prudential, Motilal Oswal, Aditya Birla Sun Life, Mirae, and Kotak. In April 2020, MFSL announced its intent to bring in India’s third largest private bank, Axis Bank as a JV partner for its life insurance business Max Life.

 

Max Life Insurance Company:

Launched in 2000, Max Life is India’s largest non-bank private life insurer and the fourth largest private life insurance company. In April 2020, Max Life announced a strategic deal with India’s third largest bank – Axis Bank to become a 70:30 JV partner in the life insurance company.

 

For information please Contact:

Nitin Thakur

+91 9873347428

[email protected]

Max Financial Services Becomes the First Large Private Sector Corporate to Settle Tax Dispute Under Vivad Se Vishwas Scheme

13th May 2020, New Delhi

Max Financial Services Limited (MFSL), today disclosed that it has settled a long pending income tax case under the dispute resolution scheme ‘Direct Tax Vivad Se Vishwas, 2020,’ recently launched by the Indian Government.

MFS has paid Rs 123.78 Cr. for settling the litigation involving capital gains from the stake sale of its erstwhile telecom joint venture Hutchison Max Telecom Ltd.

MFSL is the first large private sector player in India to have settled and paid under the Vivad Se Vishwas Scheme. The settlement was finalized with the Pr.CIT-1, Jalandhar earlier this month and due taxes have been remitted.

The payment also clears a tax dues contingent liability that has been reported on the company’s books for the past two decades. MFSL is currently the holding company of India’s fourth largest life insurer Max Life. It is listed on both NSE and BSE with a shareholding from Analjit Singh sponsor family and a set of marquee institutional investors such as KKR, New York Life, Baron, Vanguard, Blackrock and Aberdeen.

The Vivad se Vishwas scheme was announced during the union budget speech on February 1, 2020. Under this scheme, taxpayers whose tax demands are locked in dispute in multiple forums can pay due taxes by 30th June, 2020 and get a complete waiver of interest and penalty.

About Max Financial Services

Max Financial Services Limited (MFS), a part of the leading Indian multi-business conglomerate Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a 72.5% stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance.

MFS is listed on the NSE and BSE. Besides a 28.3% holding by Analjit Singh sponsor family, some of Max Financial Services’ marquee shareholders include KKR, New York Life, Baron, Vanguard, Blackrock, Aberdeen, First Voyager, Jupiter, Dimension, East Spring and the Asset Management Companies of Nippon, HDFC, ICICI Prudential, Aditya Birla Sun Life, Mirae, BNP, DSP and Sundaram.

Press Contact:

Nitin Thakur

+91 9873347428

[email protected]

Max Life to be 70:30 joint venture between Max Financial Services and Axis Bank

  • Deal marks coming together of 3rd largest private bank and 4th largest private life insurer
  • Strategic transaction to strengthen the franchise and bring long term orientation to the relationship
  • Axis Bank to own 30% stake in Max Life post transaction closure
  • Max Life to include Axis Bank logo in its brand tag line to demonstrate the close knit partnership

Axis Bank Limited (Axis Bank) and Max Financial Services Limited (MFS) announced the signing of definitive agreements to become joint venture partners in Max Life Insurance Company Limited (Max Life).  Axis Bank will hold 30% stake in Max Life post transaction closure. The development will result in a mutually beneficial and enduring relationship between Axis Bank and Max Life and bring the stability of a long term partnership to India’s fourth largest private life insurance franchise. The joint venture arrangement will significantly improve Max Life’s competitive position vis a vis its competitors, including the other large bank owned private life insurers.

The Boards of Axis Bank, MFS and Max Life approved the transaction late on 27th April 20. This is an outcome of the inter-se discussions after the three companies had signed a confidentiality and exclusivity arrangement on 20th Feb 2020 to explore the possibility of a long-term strategic partnership between Axis Bank and Max Life.

Max Financial Services presently holds a 72.5% stake in Max Life and Mitsui Sumitomo Insurance (MSI) owns 25.5% stake. Axis Bank also has a minor stake in the life insurer.

The aforesaid transaction with Axis Bank follows the ongoing swapping by MSI of 20.6% stake that it holds in Max Life with a 21.9% stake in MFS. MFS also plans to purchase MSI’s balance stake in Max Life.  Post completion of the series of transactions, Max Life will become a 70:30 joint-venture between MFS and Axis Bank. The proposed transactions are subject to approval of requisite corporate and regulatory authorities (including IRDAI, RBI and CCI).

Max Life’s tag line will include Axis Bank’s name, which will further enhance customer trust in the brand and highlight the strength of the partnership.

Axis Bank is the third largest private bank and Max Life is the fourth largest private life insurer in India. The two companies have had a successful business relationship for over a decade, providing long term saving and protection products to over 19 lakh customers. The total premium generated through this relationship has aggregated to over Rs. 38,000 crore. Both companies have invested extensively in product and need-based sales training, thereby leading to consistent increase in productivity.

Announcing the transaction, Mr. Amitabh Chaudhry, MD and CEO, Axis Bank, said, “We continue to believe in the long term prospects of India’s under-penetrated life insurance space, current environment notwithstanding. We see this joint venture creating immense value for our stakeholders given our long standing, high performing partnership with Max Life. We believe this transaction will allow us to deepen our working relationship leading to better integrated teams and infrastructure and a superior alignment in our approach.”

Welcoming the development, Mr. Analjit Singh, Founder and Chairman, Max Group, said, “This move is an emphatic signal that Max Life will become an even more formidable player in the Indian life insurance space. We at Max Group have had a long standing record of having successful joint ventures. We achieve this by choosing partners with complementary skills, a matching belief system and a shared vision for the future of the business. I believe that in Axis, we have found an exceptional partner and we have conviction that this will make Max Life fundamentally stronger, better performing and will bring stability to the franchise. We will run the organization as if it’s an equal partnership, a philosophy which has held us in good stead earlier as well.”

Mr. Pralay Mondal, Executive Director – Retail Banking, Axis Bank, added, “This transaction would enable Axis Bank to take its partnership with Max Life to the next level. Max has been a well-managed, professional organization with product and distribution capabilities that can be significantly augmented by this partnership, thus leading to greater customer value”

Elaborating the rationale for the potential transaction, Mr. Mohit Talwar, Vice Chairman, Max Group and Managing Director, Max Financial Services said, “The strategic benefits of this partnership will be multi-pronged and will continue to unfold over a long period of time. I have no doubt that this joint venture has the potential to catapult Max Life further up on the life insurance league table. The combined trust of the Max and Axis franchise will hold us in good stead, especially in the current scenario where people are seeking safety in well governed and trusted institutions.”

Axis Capital acted as the sole advisor to Axis Bank for this transaction.

 

 

About Axis Bank:

Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire spectrum of services to customer segments covering Large and Mid-Corporates, SME, Agriculture and Retail Businesses. With its 4,415 domestic branches (including extension counters) and 12,173 ATMs across the country as on 31st December, 2019, the network of Axis Bank spreads across 2,521 centres, enabling the Bank to reach out to a large cross-section of customers with an array of products and services. The Axis Group includes Axis Mutual Fund, Axis Securities Ltd., Axis Finance, Axis Trustee, Axis Capital, A.TReDS Ltd., Freecharge and Axis Bank Foundation.

About Max Financial Services

Max Financial Services Limited (MFS), a part of the leading Indian multi-business conglomerate Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a 72.5% stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance.

MFS is listed on the NSE and BSE. Besides a 28.3% holding by Analjit Singh sponsor family, some of Max Financial Services’ marquee shareholders include KKR, New York Life, Baron, Vanguard, Blackrock, Aberdeen, First Voyager, Jupiter, Dimension, East Spring and the Asset Management Companies of Nippon, HDFC, ICICI Prudential, Aditya Birla Sun Life, Mirae, BNP, DSP and Sundaram.

About Max Life

Launched in 2000, Max Life is India’s largest non-bank private life insurer and the fourth largest private life insurance company, with gross premium income of Rs. 14,575 crore and a Claims Paid Ratio of 98.74% in FY19 It currently has over 4 million policies in force and has a pan-India presence through 345 branch units. Max Life Insurance offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record demonstrated over the last 2 decades, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘to be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.


 

Press Contacts:

Axis Bank Max Financial Services
Piyali Reddy
+91 9322657983
[email protected]
Mittal Solanki
+91 9004909465
[email protected]
Brijesh Kutty
+91 9920460901
[email protected]
Nitin Thakur
+919873347428
[email protected] 
Sucharita Das
+91 9899128886
[email protected]
 

 

Max Group launches initiative to gather one lakh Social Isolation pledges

  • Max Group with Max India Foundation launches online pledge campaign #StayHomeIndia
  • Max Group companies start multiple initiatives for Covid-19 relief:
    • Max Life donates sanitizers and masks for Gurugram’s police community and donates food in Mumbai and Haldwani
    • Antara Senior Living starts #SeniorCareStartsWithUs webinars and a helpline with renowned psychiatrist Dr. Samir Parikh for mental wellbeing of senior citizens
    • Max Speciality Films resumes operations with full safety measures to support food products packaging
    • Max Estates provides for daily needs of construction laborers onsite and other underprivileged in Noida
  • Max Group to donate Rs 5 crore for Covid-19 testing of underprivileged and relief efforts through NGOs

 

NEW DELHI, April 6, 2020: Max Group and its CSR arm Max India Foundation (MIF) have launched an online pledge campaign #StayHomeIndia to donate up to Rs. 5 Crore for the Covid-19 pandemic. Since social distancing is the most effective measure to deal with the pandemic, the two-pronged campaign encourages those not involved in delivery of essential services to stay home and will provide funds for testing of Covid-19 for the underprivileged section and for other relief efforts. For every online pledge taken through the campaign to stay at home during the lockdown, Max Group, through MIF, will donate Rs. 500. The pledge can be taken through this link: https://www.facebook.com/themaxgroup/videos/574139793203827/

Employees of the Max Group are also volunteering to donate to the Covid-19 efforts through MIF.

The Foundation is already providing Covid-19 relief funding to NGOs and Social Support Groups such as Feeding India, HelpAge, Jamghat, United Sikhs, Adhikar and Gurdwara Sri Guru Singh Sabha.

Max Life Insurance has distributed sanitizers and face masks to police personnel in Gurugram to ensure their safety while on duty. Additionally, it has also donated ration to underprivileged families in Haldwani through its Pehal initiative and in Mumbai by providing roughly 30,000 food packets to the KVN Foundation.

Max Group’s senior living business, Antara has taken comprehensive safety measures to protect its Dehradun community residents given seniors’ higher vulnerability to the virus. It is organising a webinar series called #SeniorCareStartsWithUs on mental health for senior citizens with renowned psychiatrist
Dr. Samir Parikh, from Fortis, every Friday starting April 3, 2020. Dr. Parikh and his team will also be available for senior counseling through a 24-hour helpline.

Max Ventures and Industries Limited’s manufacturing unit Max Speciality Films (MSF) in Punjab has restarted operations since it provides packaging material for essential services like packaged food products, personal hygiene and pharma. The operations are being carried out with the help of minimum staff and maximum safety and hygiene measures. MSF has also donated food locally to the communities in Nawasheher in Punjab – an area hard hit by the crisis.

Max Estates Limited, the real estate arm of the Group, has halted all construction activities and has taken the responsibility of providing essentials such as groceries & cooked food to laborers at its construction sites and is also providing food related aid to the underprivileged in Noida.

Analjit Singh, Founder & Chairman, Max Group, said, “We at Max Group, understand the gravity of this unprecedented situation. These are tough times, and we are taking multiple measures through our various companies to support in every possible way. Sevabhav has been an inherent organizational value since our inception, and we will stand strong with our support. We would urge every Indian citizen to join us in the pledge for social isolation and do what they can to overcome the catastrophic situation.

Tara Singh Vachani, Managing Trustee, Max India Foundation, said, “At Max India Foundation, our focus has always been to serve the underprivileged. The current crisis puts this segment of the population at a great risk, and as responsible corporate citizens we will strive to make a difference in their lives.”

Mohit Talwar, Vice Chairman, Max Group, said, “These difficult times have forced nations to take bold steps while also testing public healthcare systems. We thank all of you who are prioritizing your safety and of those around you through social distancing. As you continue do to the same, we, at the Max Group, also want to help you in contributing to the nation by way of a small but significant act.”

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance and Healthcare industry. It has ventured into high potential sectors – Senior Living and Real Estate. In FY2019, the Group recorded consolidated revenue of Rs. 22,150 Cr. It has a total customer base of 11 million, over 350 offices spread across India and employee strength of more than 27,500 as on
31st March 2019. The Group’s investor base includes marquee global financial institutions such as New York Life, KKR, IFC Washington, Vanguard, Ward Ferry, Briarwood Capital, Nomura, Aberdeen, First State Investments, First Voyager, Eastspring, Target Asset Management, Baron, Jupiter and Doric Capital.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

Max India Foundation:

Launched in 2008, Max India Foundation (MIF) represents the Max Group’s social responsibility efforts. It is focussed on the creation of opportunities by empowering children with an education and sustainable livelihood skills. MIF’s most recent initiative is Social Emotional Ethical (SEE) Learning – a K to 12 education program to provide high quality, easy-to-use curricula and a comprehensive framework for educators and students for their holistic development. In the past, the Foundation’s work focussed on healthcare for the underprivileged and benefitted more than 34 lakh people in over 800 locations since its inception. 

 For information please contact:

Nitin Thakur
[email protected]
+91 9873347428
 
Vaishali Gauba
[email protected]
+91 9873140991
 
 
Pledge online through our website or social media:
Max Group: www.maxgroup.in   https://www.facebook.com/themaxgroup/videos/574139793203827/
 https://twitter.com/MaxGroup/status/1246080789688635394
https://www.linkedin.com/feed/update/urn:li:activity:6651845257019342848
https://www.youtube.com/watch?v=jywfCghOEUQ             
    

 

Mitsui Sumitomo to Acquire 21.87% Stake in Max Financial Services through a Share Swap

  • MSI to exchange 20.57% of its equity in Max Life Insurance for the transaction as per its agreement with MFS
  • MFS gets a right to purchase MSI’s balance Max Life stake at Rs. 85 per share

New Delhi 4th March 2020

The Board of Max Financial Services Ltd. (MFSL) has approved a transaction which will allow Mitsui Sumitomo Insurance (MSI) to swap 20.57% of its shareholding in Max Life insurance with 21.87% stake in MFS.

MSI is a part of the world’s 7th largest MS&AD Insurance Group Holding of Japan. Max Financial Services and MSI are 73:25 joint venture partners in India’s fourth largest private Life Insurer Max Life Insurance Company.

This will enable the Company to simplify the shareholding structure in its subsidiary and have more flexibility to attract strategic investments in Max Life in the future and yet maintain its significant majority ownership.

The transaction will also provide MFS the option to purchase from MSI its balance shareholding in Max Life for cash at a price of Rs 85 per share.

The transaction structure will involve MSI subscribing 75,458,088 shares of MFS having a par value of Rs. 2/- each at a price of Rs. 565.11 per share aggregating to 21.87% of the paid-up equity share capital of the Company on the date of allotment of the aforesaid fresh shares.

In consideration, MFS will receive 394,775,831 shares of Rs. 10/- each from MSI at a price of
Rs. 108.02 per share translating into 20.57% stake of MLIC. Pursuant to this, the equity stake held by MFS in Max Life will increase to 93.10%. The transaction will lead to a change in MFS’ shareholding pattern as below:

 

 

 

 

 

 

Existing Shareholding Pattern                                  New Shareholding Pattern

MFS is listed on the National Stock Exchange and Bombay Stock Exchange. Its sole operating subsidiary Max Life is the largest non-bank owned private life insurer in India. Max Life has been at the forefront of the current buoyant phase in the Indian Life sector. For nine months ending December 31, 2019, Max Life reported Market-Consistent Embedded Value (MCEV) of Rs.10,077 Crore; an Operating Return on EV (RoEV) of 18.4%; Value of New Business1 (VNB) at Rs. 576 Cr., growing 24% YoY and the New Business Margin2 (NBM) of 21%, 60 bps higher YoY.

Mohit Talwar, MD, Max Financial Services and Vice Chairman, Max Group, said
“We value MSI as our long term partners in the life insurance business and we are confident that they will continue to provide their expertise and counsel to MFS and Max Life through the Board Governance mechanism. This transaction makes the holding structure simpler and helps consolidate our shareholding in Max Life which is expected to benefit all our shareholders by attracting more investor interest.”

The transaction is subject to requisite approvals and is expected to be concluded by June 2020.

[1] Value of New Business at post-overrun costs
2 New Business Margin at post-overrun costs

 

 

 

 

 

 

About Max Financial Services

Max Financial Services Limited (MFS), a part of the leading Indian multi-business conglomerate Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a 72.5% stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance.

MFS is listed on the NSE and BSE. Besides a 28.3% holding by Analjit Singh sponsor family, some of Max Financial Services’ marquee shareholders include KKR, New York Life, Baron, Vanguard, Blackrock, Aberdeen, First Voyager, Jupiter, Dimension, East Spring and the Asset Management Companies of Nippon, HDFC, ICICI Prudential, Aditya Birla Sun Life, Mirae, BNP, DSP and Sundaram.

About Max Life

Launched in 2000, Max Life is a Joint Venture (JV) with Mitsui Sumitomo Insurance, a Japan-headquartered global insurance leader. Max Life is India’s largest non-bank private life insurer and the fourth largest private life insurance company, with gross premium income of Rs. 14,575 crore and a Claims Paid Ratio of 98.74% in FY19. It has over 4 million policies in force and has a pan-India presence through 345 branch units. Max Life Insurance offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record demonstrated over the last 19 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘to be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

For press queries please contact:

Max Financial Services

Nitin Thakur                                                                             Vaishali Gauba

[email protected]                                                        [email protected]

+91 9873347428                                                                     +91 9873140991

 

 

Axis Bank to explore long-term strategic partnership with Max Life

Axis Bank, Max Financial Services and Max Life sign exclusivity agreement

20th Feb 2020 Mumbai, New Delhi

Axis Bank, Max Financial Services Limited (MFS) and its subsidiary Max Life Insurance Company Limited (Max Life) today signed a confidentiality and exclusivity arrangement to explore the possibility of Axis Bank entering into a long-term strategic partnership with Max Life.

Max Life is currently the largest non-bank owned private life insurer in India. Max Financial Services presently holds a 72.5% stake in Max Life while Mitsui Sumitomo Insurance and Axis Bank hold 25.5% and 2.0% stake respectively.

Axis Bank and Max Life have had a successful bancassurace (banca) arrangement for nearly a decade. The new premium generated through this banca arrangement has aggregated to over Rs 12,000 crore over this period, while maintaining high persistency. Both companies have invested extensively in product and need-based sales training, thereby leading to consistent increase in productivity.

Welcoming the ongoing discussions, Mr. Amitabh Chaudhry, MD and CEO, Axis Bank, said, “At the Bank, we constantly keep assessing various strategic opportunities and we see a potential for greater participation in the under-penetrated life insurance space. We have had a long standing bancassurance relationship with Max Life and the on-going discussions are a step further to deepen and strengthen this strategic partnership. The successful completion of the proposed transaction is expected to create significant value for all stakeholders.”

Speaking about the development, Mr. Analjit Singh, Founder and Chairman, Max Group, said, “The Max Life-Axis Bank partnership is a natural. The partnership has already set multiple benchmarks in the life insurance industry for policy sales, customer retention, rigorous training to ensure need-based policy writing, technology integration etc. The strategic interest of Axis Bank in Max Life will lead to the much awaited permanence and allow both companies to work towards an enduring future for policyholders and other stakeholders. We also believe that the potential transaction will provide a fillip to the life insurance sector overall.”

Mr. Pralay Mondal, Executive Director – Retail Banking, Axis Bank, added, “Axis Bank and Max Life have worked together for nearly a decade, bringing immense value for all customers. The teams have been collaborating closely and are continuously building on each other’s strengths. The time is right to leverage this unique camaraderie and bring in a more strategic intent to benefit both entities, our customers as well as the larger ecosystem.”

Explaining the rationale for the potential transaction, Mr. Mohit Talwar, Vice Chairman, Max Group and Managing Director, Max Financial Services said, “The proposed long term partnership between Axis Bank and Max Life is a natural evolution of what has been a highly productive and mutually beneficial affiliation. It will infuse fresh impetus into the teams in both companies and will motivate them to serve customers effectively and efficiently.  I believe that this will be one of the most value-accretive partnerships in the Indian life insurance industry. ”

The transaction will be subject to applicable regulatory approvals, satisfactory completion of due diligence, execution of definitive documentation and satisfaction of other conditions, including the necessary corporate approvals.

Max Life’s Recent Performance:

For Max Life, in the first nine months of FY2020 (9MFY2020), the proprietary and bancassurance (banca) channels demonstrated strong growth of 22% and 20%, respectively.

The Value of New Business (VNB) written during the first nine months of FY20 was Rs. 576 Cr.[1], growing 24% over the previous year, arising from the shift in product mix towards Non-PAR products. Total First Year Premium increased 19% year-on-year to Rs. 3,693 Cr. Renewal Premium for 9MFY2020 was recorded at Rs. 6,618 Cr., an increase of 11% from the previous year.

In the same period, the New Business Margin was 21.0%[2], increasing 60 bps over last year. The Profit before Tax fell marginally by 6% to Rs. 353 Cr. due to an increase in Non-Par business and strategic investments in proprietary channels which are positive for long term business health.

In a first, Max Life’s Embedded Value (EV) based on market consistent methodology (MCEV) crossed the Rs. 10,000 Cr. mark at Rs. 10,077 Cr., with an Operating Return on EV (annualised) at 18.4%.

About Axis Bank:

Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire spectrum of services to customer segments covering Large and Mid-Corporates, SME, Agriculture and Retail Businesses. With its 4,415 domestic branches (including extension counters) and 12,173 ATMs across the country as on 31st December, 2019, the network of Axis Bank spreads across 2,521 centres, enabling the Bank to reach out to a large cross-section of customers with an array of products and services. The Axis Group includes Axis Mutual Fund, Axis Securities Ltd., Axis Finance, Axis Trustee, Axis Capital, A.TReDS Ltd., Freecharge and Axis Bank Foundation.

About Max Financial Services

Max Financial Services Limited (MFS), a part of the leading Indian multi-business conglomerate Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a 72.5% stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance.

MFS is listed on the NSE and BSE. Besides a 28.3% holding by Analjit Singh sponsor family, some of Max Financial Services’ marquee shareholders include KKR, New York Life, Baron, Vanguard, Blackrock, Aberdeen, First Voyager, Jupiter, Dimension, East Spring and the Asset Management Companies of Nippon, HDFC, ICICI Prudential, Aditya Birla Sun Life, Mirae, BNP, DSP and Sundaram.

About Max Life

Launched in 2000, Max Life is a Joint Venture (JV) with Mitsui Sumitomo Insurance, a Japan-headquartered global insurance leader. Max Life is India’s largest non-bank private life insurer and the fourth largest private life insurance company, with gross premium income of Rs. 14,575 crore and a Claims Paid Ratio of 98.74% in FY19. It has over 4 million policies in force and has a pan-India presence through 345 branch units. Max Life Insurance offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record demonstrated over the last 19 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘to be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

 

 


 

Press Contacts:

Axis Bank Max Financial Services
Piyali Reddy+91 9322657983[email protected]

 

Mittal Solanki

+91 9004909465

[email protected],

 

Brijesh Kutty

+91 99204 60901

[email protected]

 

 

 

Nitin Thakur+91 [email protected]

 

Sucharita Das

+91 9899128886

[email protected]

 

 

[1] Value of New Business at post-overrun costs

[2] New Business Margin (post-overrun costs)

 

Max Financial Services’ subsidiary Max Life’s Embedded Value Crosses Rs. 10,000 Cr. Mark; Max Financial Services Q3FY20 Consolidated Revenue1 Grows 19% to Rs. 5,366 Cr.

 

MFS key subsidiary Max Life Insurance 9MFY20 Financial Highlights:

  • Embedded Value at Rs. 10,077 Cr., grows 22% y-o-y; Operating Return on EV (annualised) at 18.4%
  • Value of New Business3 grows 24% to Rs. 576 Cr.
  • New Business Margin4 expands by 60 bps to 21%

5th February 2020, New Delhi

Max Financial Services Limited (MFS) today announced its financial results for the third quarter of the financial year 2019-20 (Q3FY20). MFS, the holding company of Max Life Insurance (Max Life), India’s largest non bank-owned life insurer, reported consolidated revenue of Rs. 5,366 Cr., growing 19% over the previous year while nine months (9MFY20) consolidated revenue stood at Rs. 14,000 Cr., growing 13%. Profits after Tax for Q3FY20 grew at a robust 168% to Rs. 105 Cr. over the previous year while for 9MFY20, it grew at 38% to Rs. 181 Cr., due to one-off gain from successful transition in hedging strategy from Interest Rate Swap (IRS) to Forward Rate Agreement (FRA), aided by higher investment income partly offset by shift in product mix towards NPAR savings and investments in proprietary channels.

Max Life continued its strong performance in Q3FY20, reporting 14% revenue[2] growth to reach Rs. 4,688 Cr. The Shareholders’ Profit after Tax for Q3FY20 grew by 92% to Rs. 154 Cr. due to one-off gain from successful transition in hedging strategy from IRS to FRA, aided by higher investment income partly offset by shift in product mix towards NPAR savings and investments in proprietary channels.

In a first, Max Life’s Embedded Value (EV) based on market consistent methodology (MCEV) crossed the Rs. 10,000 Cr. mark at Rs. 10,077 Cr., with an Operating Return on EV (annualised) at 18.4%. The Value of New Business (VNB) written during the first nine months of FY20 was Rs. 576 Cr.[3], growing 24% over the previous year, arising from the shift in product mix towards Non-PAR products. The New Business Margin was 21.0%[4], increasing 60 bps over last year.

Individual APE for Q3FY20 stood at Rs. 1,000 Cr., increasing 16% over the past year, driven by growth in proprietary and bancassurance channels, while other channels too continued to deliver robust sales. Max Life’s Proprietary channel recorded sales of Rs. 309 Cr. in Q3FY20, growing 19% over the previous year and continued to grow faster than the Banca channel growth of 14%.

Max Life’s Assets under Management as of December 31, 2019 were Rs. 68,618 Cr., 18% higher than the previous year.

Max Life outperformed the Indian private life insurance industry (16% growth) by 4% in 9MFY20.

Commenting on the financial performance, Mr. Mohit Talwar, Vice Chairman, Max Group & Managing Director, Max Financial Services, said, “Max Life continues to tread on the trajectory of outstanding financial performance. Not only has it surpassed expectations on most financial metrics, it has outpaced the private Life Insurance industry growth by 4% in the first nine months of the current financial year.

Due to its strong focus on creating a comprehensive channel mix, Max Life was able to add eight partners for our individual and group business in the third quarter of FY2020.

Going forward, we will continue our focus on growing the protection business, seamlessly executing the agency excellence program in tandem with New York Life consultants, and further enhancing our business development endeavours.”

Note to the Editor

The EV of a life insurance company comprises two key elements — a) Net Asset Value or the Net Worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and b) the Present Value of the company’s future expected profits from its existing business portfolio as at the date of valuation.

Max Life had transitioned its EV calculation to a Market Consistent methodology from the earlier traditional approach (Traditional Embedded Value – TEV) in FY2015. This follows market practice in developed markets, where life insurers have moved to adopt market consistent methodologies.

A market consistent methodology approach better reflects the embedded value of an insurance company by explicitly and specifically allowing for insurance and economic risks rather than using an implicit overall allowance for risks through a Risk Discount Rate (RDR) in the traditional approach. In addition, the market-consistent approach is more objective where asset and liability cash flows are valued using assumptions consistent with those applied to similar cash flows in the capital markets, thus more accurately reflecting the health of the business.

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance and Healthcare industry. It has ventured into high potential sectors – Senior Living and Real Estate. In FY2019, the Group recorded consolidated revenue of Rs. 22,150 Cr. It has a total customer base of 11 million, over 350 offices spread across India and employee strength of more than 27,500 as on 31st March 2019. The Group’s investor base includes marquee global financial institutions such as New York Life, KKR, IFC Washington, Vanguard, Ward Ferry, Briarwood Capital, Nomura, Aberdeen, First State Investments, First Voyager, Eastspring, Target Asset Management, Baron, Jupiter and Doric Capital.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the leading Indian multi-business conglomerate Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance.

About Max Life Insurance

Max Life Insurance offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record over the last 17 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘To be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

 

 

 

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Vaishali Gauba
[email protected]
+91 9873140991

[1] Consolidated numbers have been reported basis IndAS

[2] Max Life numbers are reported on IGAAP basis and Revenue excludes Unit linked Investment Income

[3] Value of New Business at post-overrun costs

[4] New Business Margin (post-overrun costs)

 

MFS key subsidiary Max Life Insurance H1FY20 Financial Highlights:

  • Embedded Value grows to Rs. 9,745 Cr., grow 26% y-o-y; Operating Return on EV (annualised) at 18.3%
  • Value of New Business grows 25% to Rs. 364 Cr.
  • New Business Margin expands by 170 bps to 24.6%
  • Individual adjusted sales grow 22% to Rs. 1,717 Cr.

6th November 2019, New Delhi

Max Financial Services Limited (MFS) today announced its financial results for the quarter and half year ended September 30, 2019. MFS, the holding company of Max Life Insurance (Max Life), India’s largest non bank-owned life insurer, reported consolidated revenues of Rs. 8,635 Cr.2 for H1FY20, growing 10% over the previous year. MFS PAT for the period was at Rs. 119 Cr., down 25% over the previous year due to shift in product mix towards Non-Participating (Non-PAR) products and investments in proprietary channels.

MFS’ sole operating subsidiary Max Life continued its strong performance in H1FY20, reporting revenues3 of Rs. 8,216 Cr., growing 15%. The Value of New Business (VNB) written during H1FY20 is Rs. 364 Cr.4, growing 25% over the previous year, as a result of shift in the product mix towards Non-PAR business while the New Business Margin was 24.6%5. The business also reported its Embedded Value (EV) based on market consistent methodology (MCEV) at Rs. 9,745 Cr., with an Operating Return on EV (annualised) at 18.3%.

Individual adjusted sales stood at Rs. 1,717 Cr., growing 22% over the past year, driven by growth in proprietary and bancassurance channels.

Max Life’s focus on proprietary channel continued to show stellar results. The channel’s sales grew 18% to Rs. 577 Cr. in H1FY20 and grew 22% to Rs. 349 Cr. in Q2FY20.

Max Life’s Assets under Management at Sep’19 end were Rs. 65,425 Cr., 17% higher than the previous year, led by growth of 19% in controlled fund and 12% in UL fund. Shareholders’ profit before tax was at Rs. 170 Cr., 39% lower than last year due to increase in Non-PAR business and investments in future growth.

Industry-wise, the Life Insurance industry grew by 11% in H1FY20 while the private life insurance sector grew by 16%.

Commenting on the financial performance, Mr. Mohit Talwar, Vice Chairman, Max Group & Managing Director, Max Financial Services, said, “Max Life has delivered on most of its financial parameters in H1FY20. Max Life outperformed the private industry growth by over 6% in the first half of the financial year. Going forward, our focus will be on strengthening the protection business, enhancing current products, successful execution of the agency excellence program with New York Life consultants as well as consistent business development efforts.”

Note to the Editor

The EV of a life insurance company comprises two key elements — a) Net Asset Value or the Net Worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and b) the Present Value of the company’s future expected profits from its existing business portfolio as at the date of valuation.

Max Life had transitioned its EV calculation to a Market Consistent methodology from the earlier traditional approach (Traditional Embedded Value – TEV) in FY2015. This follows market practice in developed markets, where life insurers have moved to adopt market consistent methodologies.

A market consistent methodology approach better reflects the embedded value of an insurance company by explicitly and specifically allowing for insurance and economic risks rather than using an implicit overall allowance for risks through a Risk Discount Rate (RDR) in the traditional approach. In addition, the market-consistent approach is more objective where asset and liability cash flows are valued using assumptions consistent with those applied to similar cash flows in the capital markets, thus more accurately reflecting the health of the business.

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Healthcare and Health Insurance industry. It has now ventured into high potential sectors – Senior Living and Real Estate. In FY2019, the Group recorded consolidated revenue of Rs. 22,150 Cr. It has a total customer base of 11 million, over 350 offices spread across India and employee strength of more than 27,500 as on 31st March 2019. The Group’s investor base includes marquee global financial institutions such as New York Life, KKR, IFC Washington, Vanguard, Ward Ferry, New York Life, Briarwood Capital, Nomura, Aberdeen, First State Investments, First Voyager, Eastspring, Target Asset Management, Baron, Jupiter and Doric Capital.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 3.2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance.

About Max Life Insurance

Max Life Insurance offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record over the last 17 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘To be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Vaishali Gauba
[email protected]
+91 9873140991


  1. Consolidated numbers have been reported basis IndAS
  2. MFS Revenue, EBITDA & PBT excludes MLIC Dividend Income of Rs 190 Cr in H1FY20 since it is an inter-company transaction
  3. Max Life numbers are reported on IGAAP basis and Revenue excludes Unit linked Investment Income
  4. Value of New Business at post-overrun costs
  5. New Business Margin at structural costs

MFS key subsidiary Max Life Insurance Q1FY2020 Financial Highlights:

  • Revenue1: Rs. 3,544 Cr.; grows 15%
  • Embedded Value grows to Rs. 9,314 Cr.; Operating Return on EV: 14.8%
  • Value of New Business grows 33% to Rs. 134 Cr.; New Business Margin expands 150 bps to 24.9%

6th August 2019, New Delhi

Max Financial Services Limited (MFS) today announced its financial results for the first quarter of financial year 2019-20 (Q1 FY2020). MFS, the holding company of Max Life Insurance (Max Life), India’s largest non bank-owned life insurer, reported consolidated revenues of Rs. 3,949 Cr., growing 11% over the previous year. MFS’ profit after tax was recorded at Rs. 54 Cr., showing a growth of 65%.

MFS’ Board also approved a preferential issuance, which will allow Mitsui Sumitomo Insurance (MSI) to swap 19.98% of its shareholding in Max Life with 21.45% stake in MFS.

MSI is part of the world’s 7th largest MS&AD Insurance Group Holding of Japan. Max Financial Services and MSI are 74:26 joint venture partners in India’s fourth largest private Life Insurer Max Life Insurance Company.

The transaction will also provide MFS an option to purchase from MSI, its balance shareholding of 5.24% of the equity share capital of Max Life for cash at a price of Rs 80.89 per share.

The transaction structure will involve MSI subscribing 7,35,51,029 shares of MFS having a par value of Rs. 2 each at a price of Rs. 421.67 per share aggregating to 21.45% of the paid-up equity share capital of the Company on the date of allotment of the aforesaid fresh shares. In consideration, MFS will receive 38,33,92,784 shares of Rs. 10/- each from MSI at a price of Rs. 80.89 per share translating into 19.98% stake of MLIC. Pursuant to this, the equity stake held by MFS in Max Life will increase from 71.79% to 91.77%.

MFS’ sole operating subsidiary Max Life continued its strong performance in Q1 FY2020, reporting revenues of Rs. 3,544 Cr., growing 15%. The business also reported its Embedded Value (EV) based on market consistent methodology (MCEV) at Rs. 9,314 Cr., with an Operating Return on EV (RoEV) of 14.8%. The Value of New Business2 (VNB) written during the quarter was Rs. 134 Cr., growing 33% over the previous year while the New Business Margin3 (NBM) expanded 150 bps to 24.9%.

Max Life’s Assets under Management in Q1FY2020 were Rs. 63,877 Cr., 18% higher than the previous year. The Company’s Individual APE grew 23% over the last year to Rs. 679 Cr.

Max Life’s proprietary channel sales were recorded at Rs. 228 Cr. – a growth of 16% over the previous year. The e-commerce sales were up 49%, owing to growth in organic leads while the CAT channel recorded 42% growth.

Max Life also initiated its Agency Excellence Program during the quarter, based on recommendations from former senior employees of New York Life, its erstwhile JV partner known for its gold standard in Agency channel.

Commenting on the proposed preferential allotment to MSI, Mr. Mohit Talwar, Vice Chairman, Max Group & Managing Director, Max Financial Services, said, “MSI has been valued partners since long, contributing through their participation in the Max Life Board. We are positive that they will continue to be equally engaged and helpful at the holding company level. We look forward to maintaining our fruitful relationship with them.”

Elucidating the quarterly financial results, he added, “Max Life has not only flourished on all financial metrics but with Individual Sales Growth of 23%, continues to perform in line with the robust private market growth. The performance in the first quarter of the fiscal has set a firm pace for our goal of achieving 25%-25%-25% in Sales Growth, New Business Margin, and Return on Embedded Value respectively, over the next three years.”

Note to the Editor

The EV of a life insurance company comprises two key elements — a) Net Asset Value or the Net Worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and b) the Present Value of the company’s future expected profits from its existing business portfolio as at the date of valuation.

Max Life had transitioned its EV calculation to a Market Consistent methodology from the earlier traditional approach (Traditional Embedded Value – TEV) in FY2015. This follows market practice in developed markets, where life insurers have moved to adopt market consistent methodologies.

A market consistent methodology approach better reflects the embedded value of an insurance company by explicitly and specifically allowing for insurance and economic risks rather than using an implicit overall allowance for risks through a Risk Discount Rate (RDR) in the traditional approach. In addition, the market-consistent approach is more objective where asset and liability cash flows are valued using assumptions consistent with those applied to similar cash flows in the capital markets, thus more accurately reflecting the health of the business.

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Healthcare and Health Insurance industry. It has now ventured into high potential sectors – Senior Living and Real Estate. In FY2019, the Group recorded consolidated revenue of Rs. 22,150 Cr. It has a total customer base of 11 million, over 350 offices spread across India and employee strength of more than 27,500 as on 31st March 2019. The Group’s investor base includes marquee global financial institutions such as New York Life, KKR, IFC Washington, Vanguard, Ward Ferry, New York Life, Briarwood Capital, Nomura, Aberdeen, First State Investments, First Voyager, Eastspring, Target Asset Management, Baron, Jupiter and Doric Capital.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 3 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance.

About Max Life Insurance

Max Life Insurance offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record over the last 17 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘To be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Vaishali Gauba
[email protected]
+91 9873140991

 For further information, please visit:
Max Group:
www.maxgroup.in
MFS:
www.maxfinancialservices.com 
https://www.facebook.com/themaxgroup: https://twitter.com/maxgroup 

  1. Excludes Max Life Unit Investment Income
  2. Value of New Business at post-overrun costs
  3. New Business Margin at structural costs

Max Life Results Highlights (FY2019):

  • Value of New Business: Rs. 856 Cr, grew 30%; New Business Margin: 22%
  • New Business Premium: Rs. 3,950 Cr., grew 22%
  • Assets Under Management crossed Rs 60,000 Cr.; grew 20% to Rs. 62,798 Cr.

28th May 2019, New Delhi

Max Financial Services Limited (MFS) today announced financial results for the year 2018-19 (insurance company, reported consolidated revenues of Rs. 17,538 Cr., growing 17% over the previous year. The Company reported a consolidated Net Profit of Rs. 391 Cr., 30% lower compared to the previous year, largely due to one-time expenses for pursuing an inorganic opportunity for Max Life and reversible fair valuation impact as per the recently adopted accounting methodology, IndAS.FY2019). MFS, which manages a majority stake in Max Life Insurance, India’s largest non-bank, private life.

MFS’ sole operating subsidiary Max Life Insurance demonstrated broad-based growth across channels with Gross Written Premium in FY2019 at Rs. 14,575 Cr., growing 17% over the previous year. New Business Premium (on APE basis) stood at Rs. 3,950 Cr., achieving a growth of 22% over the previous year. Max Life’s Renewal Premium was Rs. 9,415 Cr., growing 15% over the previous year. This was primarily driven by the growth in proprietary channel of 30% during the year, increasing its share in the Adjusted Individual First Year Premium from 27% in FY2018 to 30% in FY2019. In addition to this, overall growth was also spurred by increase of 18% in the Bancassurance channel.

Max Life also reported Market-Consistent Embedded Value (MCEV) of Rs. 8,938 Cr., with an Operating Return on EV (RoEV) of 22%. The Value of New Business (VNB) written during FY2019 was Rs. 856 Cr., growing 30% over the previous year, and the New Business Margin (NBM) stood at 22%, 150 bps higher compared to the previous year. This was primarily driven by higher sales of Protection products, an increase in Non-participating (Non-PAR) business and higher proportion of the Assured Wealth Plan.

Max Life achieved an important milestone this year with its Assets Under Management (AUM) crossing the Rs. 60,000 Cr. mark for the first time. The AUM as at 31st March 2019 stood at Rs. 62,798 Cr, growing 20% over the previous year.

Max Life also set a benchmark as its Claims Settlement Ratio further improved by 48 bps to 98.7% in FY19 from 98.3% in FY 18, as per the Insurance Regulatory and Development Authority of India (IRDAI) Annual Report.

Q4 FY2019 Performance

In Q4 FY2019, Max Life reported Individual new business premium of Rs.1,634 Cr., growing 22% over the same quarter last year. Max Life reported revenues of Rs. 6,236 Cr. in Q4 FY2019, showcasing a growth of 18% over Q4FY2018.

Mr. Mohit Talwar, Vice Chairman, Max Group & Managing Director, Max Financial Services, said, “With an increase of 65 bps compared to last year, Max Life now commands ~10% of the private market share in the life insurance sector. This is a testimony to the company’s strong and consistent performance trajectory over the years. I am happy to report that in FY19 Max Life has clocked a 22-22-22 growth in Value of New Business, Margin and Return on Embedded Value, which sets it well on way to achieve 25-25-25 growth in these parameters by 2022.”

Note to the Editor

The EV of a life insurance company comprises two key elements — a) Net Asset Value or the Net Worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and b) the Present Value of the company’s future expected profits from its existing business portfolio as at the date of valuation.

Max Life had transitioned its EV calculation to a Market Consistent methodology from the earlier traditional approach (Traditional Embedded Value – TEV) in FY2015. This follows market practice in developed markets, where life insurers have moved to adopt market consistent methodologies.

A market consistent methodology approach better reflects the embedded value of an insurance company by explicitly and specifically allowing for insurance and economic risks rather than using an implicit overall allowance for risks through a Risk Discount Rate (RDR) in the traditional approach. In addition, the market-consistent approach is more objective where asset and liability cash flows are valued using assumptions consistent with those applied to similar cash flows in the capital markets, thus more accurately reflecting the health of the business.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 3 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

About Max Life Insurance

Max Life Insurance offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record over the last 17 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘To be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Vaishali Gauba
[email protected]
+91 9873140991

Analjit Singh to become Chairman of Max Life and Max India
Mohit Talwar to become Group Vice Chairman

11th February 2019, New Delhi

India’s leading multi-business conglomerate, the Max Group, today announced that Rahul Khosla, currently Group President, will move to a non-executive role as Group Advisor effective 1 April, 2019. The move is in line with the transition plan announced last year.

As a part of the transition, Analjit Singh will take on the position of Chairman of Max India and Max Life currently held by Rahul. Rahul will also demit his role as Chairman, Max Healthcare once regulatory approvals for the transaction with KKR-Radiant are received. This position will then be filled by KKR Radiant.

Commenting on Rahul’s contribution, Analjit Singh, Founder and Chairman Emeritus, Max Group, said, “Rahul joined the Max Group in August 2011, which was at the cusp of my shift to a nonexecutive role and allowed me to pursue other initiatives. That journey could not have been possible without Rahul taking on the mantle of Managing Director and subsequently as Group President.
Together, Rahul and the team have implemented what ought to be seen as a ‘benchmark’ of succession from sponsor to seasoned professionals leading the Group in various businesses.

During his tenure, Rahul successfully delivered on the agenda of value creation and growth of our Group’s businesses, while strengthening our organization, brand, governance and reputation. I count on his continued support as an advisor to the Group for the new developments on the horizon.”

Further, Mohit Talwar, who has been with the Group since November 2007, will be elevated to the position of Group Vice Chairman, effective 1 April, 2019. In this capacity, Mohit will represent the Group on the Founders behalf and support the respective CEO’s in their operating businesses.

“Mohit has made significant contribution, especially in the areas of capital management and corporate finance over the years and his support will be valuable as the Group forges its platforms of future growth including Life Insurance, Real Estate, Senior Living and Hospitality,” said Analjit Singh.

Mohit will also continue to serve as the Managing Director of Max Financial Services and Max India and remain on the Boards of Max Group’s operating companies.

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance and, Health & Allied businesses and packaging sectors. In FY2018, the Group recorded consolidated revenues of Rs. 19,151 Cr. It has a total customer base of 11 million, over 300 offices spread across India and people strength of more than 25,000 as on 31st December 2018. The Group’s investor base includes marquee global financial institutions such as KKR, IFC Washington, Vanguard, Ward Ferry, New York Life, Nomura, Aberdeen, First State Investments, First Voyager, Eastspring, Target Asset Management, Baron, Jupiter, Doric capital and Wasatch.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

Press Contact:

Nitin Thakur
[email protected]
+91 9873347428

Vaishali Gauba
[email protected]
+91 9873140991

Max Financial Services Reports Q3 Consolidated Revenues of Rs. 4,124 Cr., growing 12%
MFS key subsidiary Max Life Insurance Financial Highlights:

  • Revenues1: Rs. 4,113 Cr.; grows 12%
  • Embedded Value grows to Rs. 8,254 Cr.; Operating Return on EV: 18.8%
  • Highest ever Claims Paid Ratio at 98.26% for 2017-18
  • Value of New Business grows to Rs. 466 Cr.; New Business Margin at 22.8%

 

11th February 2019, New Delhi

Max Financial Services Limited (MFS) today announced its financial results for the third quarter of financial year 2018-19 (Q3 FY2019). MFS, the holding company of Max Life Insurance (Max Life), India’s largest non bank-owned life insurer, reported consolidated revenues of Rs. 4,124 Cr., growing 12% over the previous year. The Company’s consolidated revenue for the first nine months (9M) of FY19 stood at Rs. 11,292 Cr., growing 16%, while the Shareholders’ Profit before tax fell marginally by 4% to Rs. 375 Cr. due to planned investments in FY19 towards proprietary channel growth initiatives.

MFS’ sole operating subsidiary Max Life reported revenues of Rs. 4,113 Cr., growing 12% over the corresponding quarter last year. The business also reported its Embedded Value (EV) based on market consistent methodology (MCEV) at Rs. 8,254 Cr., with an Operating Return on EV (RoEV) of 18.8%. The Value of New Business2(VNB) written during the quarter was Rs. 466 Cr., growing 37% over the previous year while the New Business Margin3 (NBM) stood at 22.8%. The higher VNB was a result of higher sales of protection products as well as higher NBM’s in the protection business. In addition, the key health vectors for the business such as conservation ratio, persistency, continued to be top quartile in the industry.

As per the Insurance Regulatory and Development Authority (IRDA) Annual Report for 2018, Max Life has recorded its highest ever Claims Paid Ratio of 98.26%.

Max Life’s Assets under Management, as on 31st Dec 2018, were Rs. 58,397 Cr., 16% higher than the previous year. Despite a high base effect in 2018, Max Life in Q3 posted individual adjusted growth of 13%, outpacing the private industry growth of 10%. Proprietary channels continued to outperform bancassurance on growth, basis 9M YTD, with proprietary sales growing by 30% while banca sales also grew at a healthy 17%.

Commenting on MFS’ performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “Our operating subsidiary, Max Life’s financial results this quarter show an all-round improvement across metrics. The company delivered robust performance amongst listed players while outpacing industry growth, with its private market share increasing by 65 basis points for 9M YTD. We also set a higher benchmark for ourselves by achieving our highest claims paid ratio ever. While all our distribution channels exhibited a healthy growth, the e-commerce channels outshone with a growth of 76% in sales. Going forward, we plan to continue our focus on proprietary initiatives to deliver on our planned expansion agenda.”

Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd. said, “With Individual Adjusted Sales growing by 21% in the nine months and a robust 35% in January, Max Life continues to flourish and cement its position as one of the country’s leading life insurers. While the New Business (Total FYP) growth of 17% and a VNB growth of 37% continue to reflect our existing strengths, we will pay special attention to new business development and increased profitability. Our aim now remains set on achieving 25%-25%-25% Sales growth, New Business Margin, and Return on Embedded Value, respectively, over the next three years.”

Note to the Editor

The EV of a life insurance company comprises two key elements — a) Net Asset Value or the Net Worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and b) the Present Value of the company’s future expected profits from its existing business portfolio as at the date of valuation.

Max Life had transitioned its EV calculation to a Market Consistent methodology from the earlier traditional approach (Traditional Embedded Value – TEV) in FY2015. This follows market practice in developed markets, where life insurers have moved to adopt market consistent methodologies.

A market consistent methodology approach better reflects the embedded value of an insurance company by explicitly and specifically allowing for insurance and economic risks rather than using an implicit overall allowance for risks through a Risk Discount Rate (RDR) in the traditional approach. In addition, the market-consistent approach is more objective where asset and liability cash flows are valued using assumptions consistent with those applied to similar cash flows in the capital markets, thus more accurately reflecting the health of the business.

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY2018, the Group recorded consolidated revenue of Rs. 19,151 Cr. It has a total customer base of 11 million, over 300 offices spread across India and people strength of more than 25,000 as on 31st December 2018. The Group’s investor base includes marquee global financial institutions such as KKR, IFC Washington, Vanguard, Ward Ferry, New York Life, Nomura, Aberdeen, First State Investments, First Voyager, Eastspring, Target Asset Management, Baron, Jupiter, Doric capital and Wasatch.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 3 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

About Max Life Insurance

Max Life Insurance offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record over the last 17 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘To be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

For information please contact:

Nitin Thakur
[email protected]om
+91 9873347428

Vaishali Gauba
[email protected]
+91 9873140991

 For further information, please visit:
Max Group:
www.maxgroup.in
MFS:
www.maxfinancialservices.com 
https://www.facebook.com/themaxgroup: https://twitter.com/maxgroup 

  1. Excludes Max Life Unit Investment Income
  2. Value of New Business at post-overrun costs
  3. New Business Margin at structural costs

Max Financial Services reports Q2 Consolidated Revenues1 of Rs. 4,075 Cr., growing 18%
Max Life Insurance Financial Highlights:

 

  • Revenues1 in Q2 FY2019: Rs. 4,067 Cr., grew 19%
  • Embedded Value2 : Rs. 8,034 Cr.; Operating Return on EV: 18.5%
  • New Business Margin3: 22.9%

 

14th November 2018, New Delhi

Max Financial Services Limited (MFS) today announced its financial results for the second quarter of financial year 2018-19 (Q2 FY2019). MFS is the holding company of Max Life Insurance (Max Life), India’s largest non bank-owned life insurer. MFS reported consolidated revenues1 of Rs. 4,075 Cr., growing 18% over the previous year. The Company also reported Profit after Tax4 of Rs. 53 Cr., 22% lower compared to the previous year due to one-off expenses for the attempted acquisition of IDBI Federal Life, higher proportion of protection sales and shift in product mix.

During the quarter, Max Life reported Revenues1 of Rs 4,067 Cr., growing 19% over the corresponding quarter last year. Shareholders’ Profit before Tax was for the quarter was Rs. 185 Cr., 42% higher compared to the previous year.

The business also reported strong Operating Return on Embedded Value (RoEV) of 18.5% with Market-Consistent EV (MCEV) of Rs. 8,034 Cr. The Value of New Business (VNB) (pre-cost overrun) written during the first half of FY2019 (H1 FY2019) was Rs. 325 Cr. growing 41% over the previous year, mainly due to higher sales of protection products. The pre-cost overrun New Business Margin (NBM) stood at 22.9%. The post-cost overrun VNB during H1 was Rs. 290 Cr. growing 42% over the previous year. The post-cost overrun NBM stood at 20.4%.

Max Life’s Assets under Management, as on 30th September 2018, were Rs. 56,070 Cr., growing 17% over the previous year. Max Life is one of the 5 largest fund managers among life insurers in India.

H1 FY2019 Performance

During H1 FY2019, MFS’s Consolidated Revenues were Rs. 7,168 Cr, up 19% over the previous year. The Company also reported Consolidated Net Profit of Rs. 66 Cr. in H1 FY2019.

During this period, Max Life reported Individual Adjusted Premium Equivalent (APE) of Rs 1,405 Cr., growing an impressive 26%. The Gross Written Premium during this period was Rs. 5,619 Cr., growing 17% over last year.

Commenting on Max Life’s performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “Max Life’s financial performance is at an all-time high. Growing 26% in the first half of the year, the business has significantly outpaced the 11% growth by the Indian private life insurance sector. Shareholders’ profit has also shown remarkable growth, owing largely to higher investment income. The business has notched up a gain of 90 basis points in market share to 9%, consolidating its position amongst the four largest private life insurers.

While we have experienced strong growth across all channels – proprietary channels have especially led the way with a robust 33% growth in H1, significantly exceeding the 22% growth in Banca. The e-commerce channel specifically has grown an outstanding 158% over last year. We are confident that our continued thrust towards reinvigorating these channels will create strong long-term growth for the business.”

Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd. said, “The impressive growth in Embedded Value and Value of New Business reflects strong fundamentals in the existing business and a continued focus on profitable new business.

The health metrics of the business also continue to be solid with a Conservation Ratio of 91%, which puts us at the top in the industry; and Surrenders to GWP Ratio of only 21%, which is the third best in the industry as of date. I strongly believe that the market will take these fundamentals into cognisance very soon, which will be accordingly reflected in the Company’s market cap as well.”

Note to the Editor

The EV of a life insurance company comprises two key elements — a) Net Asset Value or the Net Worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and b) the Present Value of the company’s future expected profits from its existing business portfolio as at the date of valuation.

Max Life had transitioned its EV calculation to a Market Consistent methodology from the earlier traditional approach (Traditional Embedded Value – TEV) in FY2015. This follows market practice in developed markets, where life insurers have moved to adopt market consistent methodologies.

A market consistent methodology approach better reflects the embedded value of an insurance company by explicitly and specifically allowing for insurance and economic risks rather than using an implicit overall allowance for risks through a Risk Discount Rate (RDR) in the traditional approach. In addition, the market-consistent approach is more objective where asset and liability cash flows are valued using assumptions consistent with those applied to similar cash flows in the capital markets, thus more accurately reflecting the health of the business.

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY2018, the Group recorded consolidated revenues of Rs. 19,151 Cr. It has a total customer base of 10 million, nearly 210 offices spread across India and people strength of more than 24,500 as on 31st March 2018. The Group’s investor base includes marquee global financial institutions such as KKR, IFC Washington, Vanguard, Ward Ferry, New York Life, Nomura, Aberdeen, Temasek, Target Asset Management, Baron, Jupiter, Doric capital and Wasatch.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 3 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

About Max Life Insurance

Max Life Insurance offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record over the last 17 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘To be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.
For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

 For further information, please visit:
Max Group:
www.maxgroup.in
MFS:
www.maxfinancialservices.com 
https://www.facebook.com/themaxgroup: https://twitter.com/maxgroup 

  1. Excludes Max Life Unit Investment Income
  2. Market Consistent EV (MCEV) pre-shareholder divided
  3. Pre-cost overruns
  4. Adjusted for minority interest

Max Financial Services reports Q1 Consolidated Revenues1 of Rs. 3,099 Cr., growing 21%
Max Life Q1 FY2019 Highlights:

 

  • Revenues : Rs. 3,085 Cr., grew 20%
  • Embedded Value : Rs. 7,645 Cr., Operating Return on EV: 15%
  • Assets Under Management crossed Rs 50,000; Value of New Business : Rs. 130 Cr.; New Business Margin3: 23.5%

 

6th August 2018, New Delhi

Max Financial Services Limited (MFS) today announced its financial results for the first quarter of financial year 2018-19 (Q1 FY2019). MFS, the holding company of Max Life Insurance (Max Life), India’s largest non bank-owned life insurer, reported consolidated revenues1 of Rs. 3,099 Cr., growing 21% over the previous year. The Company also reported Profit before Tax of Rs. 78 Cr., 10% lower compared to the previous year.

MFS’ sole operating subsidiary Max Life reported revenues1 of Rs 3,085 Cr., growing 20% over the corresponding quarter last year. The business also reported its Embedded Value based on market consistent methodology (MCEV) at Rs. 7,645 Cr., with an Operating Return on EV (RoEV) of 15%. The Value of New Business (VNB) (pre-cost overrun) written during the quarter was Rs. 130 Cr. growing 23% over the previous year. The New Business Margin (NBM) stood at 23.5%. The post-cost overrun VNB was Rs. 101 Cr. growing 17% over the previous year. The post-cost overrun NBM stood at 18.1%.

Max Life’s Assets under Management, as on 30th June 2018, were Rs. 53,940 Cr., 18% higher compared to the previous year. Max Life currently ranks among the 5 largest fund managers among life insurers in India.

In Q1, Max Life reported Individual Adjusted Sales of Rs 527 Cr., growing 15%, while Total Sales amounted to Rs. 641 Cr., growing 16% over last year. The business also reported a Solvency Surplus of Rs. 1,911 Cr., with a healthy Solvency Ratio of 262%.

Max Life has made significant strides in growing its eCommerce business over a very short span of time. The digital and online sales channel already accounts for approximately 1 in 4 new customers being added to the company’s portfolio.

Commenting on the Company’s performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “Max Life’s robust performance this quarter has already laid strong foundations for growth. We plan to reinvigorate our proprietary channels by significantly adding to our agency force and offices over the next two to three years, and deepening our lead in the digital space where we are already market leaders in term plans and have also started operating in the savings space. We are orienting our digital strategy towards affluent households in the top 50 cities as Digital customers equal an estimated 2.5 times lifetime value when compared to others. Complementing the growth expected from our strong bancassurance partnerships, and new distribution alliances we are set to deliver a market-leading growth trajectory, coupled with superior financial performance, earnings and returns.”

Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd. said, “The quality of the business across several parameters remains top quartile. The robust growth in Embedded Value and Value of New Business reflects strong fundamentals in the existing business and a continued focus on profitable new business. Having achieved a 20-20-20 growth in Embedded Value, sales and margins last year itself, we have now set our aspiration to achieve 25-25-25 growth over the next three years. All our channels are delivering profitable growth powered by improved productivity and I am confident we will achieve this milestone very soon.”

Note to the Editor

The EV of a life insurance company comprises two key elements — a) Net Asset Value or the Net Worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and b) the Present Value of the company’s future expected profits from its existing business portfolio as at the date of valuation.

Max Life had transitioned its EV calculation to a Market Consistent methodology from the earlier traditional approach (Traditional Embedded Value – TEV) in FY2015. This follows market practice in developed markets, where life insurers have moved to adopt market consistent methodologies.

A market consistent methodology approach better reflects the embedded value of an insurance company by explicitly and specifically allowing for insurance and economic risks rather than using an implicit overall allowance for risks through a Risk Discount Rate (RDR) in the traditional approach. In addition, the market-consistent approach is more objective where asset and liability cash flows are valued using assumptions consistent with those applied to similar cash flows in the capital markets, thus more accurately reflecting the health of the business.

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY2018, the Group recorded consolidated revenues of Rs. 19,151 Cr. It has a total customer base of 10 million, nearly 210 offices spread across India and people strength of more than 24,500 as on 31st March 2018. The Group’s investor base includes marquee global financial institutions such as KKR, IFC Washington, Vanguard, Ward Ferry, New York Life, Nomura, Aberdeen, Temasek, Target Asset Management, Baron, Jupiter, Doric capital and Wasatch.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 3 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

About Max Life Insurance

Max Life Insurance offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record over the last 17 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘To be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

 For further information, please visit:
Max Group:
www.maxgroup.in
MFS:
www.maxfinancialservices.com 
https://www.facebook.com/themaxgroup: https://twitter.com/maxgroup 

Analjit Singh Appointed as Non-Executive Chairman on the Board of Max Financial Services Limited

23rd July 2018, New Delhi

At its meeting earlier today, the Board of Max Financial Services (MFS) (BSE: 500271 | NSE: MFSL) appointed Mr. Analjit Singh, Founder and Chairman Emeritus of the Max Group as the non-executive Chairman of MFS.

Max Financial Services is the listed holding company for Max Life Insurance Company and was formed soon after the demerger of Max India Limited. That demerger resulted in the creation of three independent listed entities, namely, Max Financial Services, Max India Limited and Max Ventures & Industries Limited, collectively comprising the Max Group.

Mr. Analjit Singh is the sponsor and principal shareholder of MFS, Max India and MVIL. He replaces Ms. Naina Lal Kidwai who was appointed Chairman of Max Financial Services on 15th January, 2016.

Commenting on this development, Ms. Naina Lal Kidwai said, “After Chairing the Board of Max Financial Services for the last two and a half years I have come to realise the amazing strengths of the company and the high quality of its underlying life insurance business, and management. I suggested to Analjit, that as the “principal sponsor” of MFS, it is only appropriate that he Chairs the Board of the Company.”

Mr. Analjit Singh commented, “I have known Naina for over four decades and have immense regard for her at a personal and professional level. I have accepted her recommendation and am happy to Chair Max Financial Services.”

Ms. Kidwai will continue on the Board of MFS for her full term as an independent, non executive director.

Mr. Rahul Khosla, Max Group President will continue as Group President and in all his current executive roles till August 2019, as originally envisaged at the time of his joining the Max Group. Commenting on this development, he said “I am pleased to see the Group sponsor assuming the role of Chairman of MFS. Analjit and I have also agreed that we will mutually determine appropriate non-executive roles within the Max Group and family-owned private enterprises after my executive roles end in August 2019.”

Mr. Mohit Talwar will continue in his current roles as Vice Chairman, Max Ventures and Industries Limited and Managing Director of MFS and Max India.

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY2018, the Group recorded consolidated revenues of Rs. 19,151 Cr. It has a total customer base of 10 million, nearly 210 offices spread across India and people strength of more than 24,500 as on 31st March 2018. The Group’s investor base includes marquee global financial institutions such as KKR, IFC Washington, Vanguard, Ward Ferry, New York Life, Nomura, Aberdeen, Temasek, Target Asset Management, Baron, Jupiter, Doric capital and Wasatch.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 3 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

________________________________________________________________________
 

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

 For further information, please visit:
Max Group:
www.maxgroup.in
MFS:
www.maxfinancialservices.com 
https://www.facebook.com/themaxgroup: https://twitter.com/maxgroup 

Max Financial Services reports Consolidated Revenues of Rs. 14,967 Cr. in FY2018, grows 15%;
Max Life Embedded Value at Rs 7,509 Cr., Operating RoEV 20.6%

 

Max Life Results Highlights (FY2018):

 

  • Value of New Business: Rs. 656 Cr, grew 31%; New Business Margin: 20.2%
  • Individual Adjusted Sales: Rs. 3,215 Cr., grew 22%
  • Assets Under Management crossed Rs 50,000; grew 18% to Rs. 52,237 Cr.

 

 

25th May 2018, New Delhi

Max Financial Services Limited (MFS) today announced financial results for the year 2017-18 (FY2018). MFS, which manages a majority stake in Max Life Insurance, India’s largest non-bank, private life insurance company, reported consolidated revenues1 of Rs. 14,967 Cr., growing 15% over the previous year. The Company reported consolidated Net Profit of Rs. 296 Cr., 25% lower compared to the previous year

MFS’ sole operating subsidiary Max Life Insurance demonstrated broad-based growth across channels with Individual Adjusted Sales of Rs. 3,215 Cr. in FY2018, growing 22% over the previous year. This was primarily driven by improvement in productivity and increased demand for unit-linked products across channels. Max Life’s Renewal Premium stood at Rs. 8,152 Cr., growing 15% over the previous year, led by efficiency improvement and various initiatives aimed at lapse recovery. Gross Written Premium in FY2018 was Rs. 12,501 Cr., growing 16% over the previous year.

Max Life also reported Market-Consistent Embedded Value2 (MCEV), of Rs. 7,509 Cr., with an Operating Return on EV (RoEV) of 20.6%. The Value of New Business (VNB) written during FY2018 was Rs 656 Cr, growing 31% over the previous year, and the New Business Margin stood at 20.2%, 140 bps higher compared to the previous year. Max Life hit an important milestone this year with its Assets Under Management (AUM) crossing the Rs. 50,000 Cr. mark for the first time. The AUM as at 31st March 2018 stood at Rs. 52,237 Cr, growing 18% over the previous year. Max Life is now the 5th largest fund manager among private life insurers in India. Max Life’s AUM has grown steadily over the years, reflecting consistent performance, and a stable approach to product portfolio mix.

Q4 FY2018 Performance

In Q4 FY2018, Max Life reported a strong growth of 28% in Individual Adjusted Sales, despite a high base in the same quarter last year. The Q4 Individual Adjusted Sales were Rs. 1,339 Cr. MFS reported consolidated revenues1 of Rs. 5,300 Cr. and Net Profit4 of Rs. 128 Cr. in Q4, growing a healthy 23% and 9%, respectively.

Commenting on the Company’s performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “We are pleased with Max Life’s strong and consistent organic growth over the past few years. At the same time, with a healthy solvency ratio of 275% and fund-raising capabilities, we have the appetite as well as the ability to aggressively pursue inorganic growth. Acquiring a high quality bank-owned life insurance asset would enable us to offer our product portfolio to a much wider customer base.

Meanwhile, we will continue to build on our existing strengths of need based selling of long-term savings and protection products through well-balanced distribution architecture comprising bancassurance, agency and the rapidly growing digital channel.”

Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd. said, “We had an aspiration of achieving 20-20-20 growth in sales, margin and EV by 2020. I am pleased to see that Max Life has outperformed itself in FY2018, achieving our three-year goal within the first year. This augurs very well for the future and in the coming months, it will be our priority to optimise market share and profitability while focusing on organic and inorganic growth opportunities.”

Note to the Editor

The EV of a life insurance company comprises two key elements — a) Net Asset Value or the Net Worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and b) the Present Value of the company’s future expected profits from its existing business portfolio as at the date of valuation.

Max Life had transitioned its EV calculation to a Market Consistent methodology from the earlier traditional approach (Traditional Embedded Value – TEV) in FY2015. This follows market practice in developed markets, where life insurers have moved to adopt market consistent methodologies.

A market consistent methodology approach better reflects the embedded value of an insurance company by explicitly and specifically allowing for insurance and economic risks rather than using an implicit overall allowance for risks through a Risk Discount Rate (RDR) in the traditional approach. In addition, the market-consistent approach is more objective where asset and liability cash flows are valued using assumptions consistent with those applied to similar cash flows in the capital markets, thus more accurately reflecting the health of the business.

 

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY2017, the Group recorded consolidated revenues of Rs. 16,798 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2017. The Group’s investor base includes marquee global financial institutions such as KKR, IFC Washington, Vanguard, Ward Ferry, New York Life, Nomura, Aberdeen, Temasek, Target Asset Management, Baron, Jupiter, Doric capital and Wasatch.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 3 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

 

About Max Life Insurance

Max Life Insurance offers comprehensive long term savings, protection and retirement solutions through its high quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record over the last 17 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘To be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

 

________________________________________________________________________
 

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

 For further information, please visit:
Max Group:
www.maxgroup.net
MFS:
www.maxfinancialservices.com 
https://www.facebook.com/themaxgroup: https://twitter.com/maxgroup 

Sahil Vachani Appointed as Director on the Boards of Max Financial Services and Max Life Insurance

 

25th May 2018, New Delhi

The Board of Directors of Max Financial Services Ltd. (MFS) today approved the appointment of Sahil Vachani, Managing Director and CEO of Max Ventures and Industries Limited (Max Ventures), as a Director on the Company’s Board, subject to shareholder approval. He was also recently appointed to the Board of Directors of MFS’ subsidiary Max Life Insurance, effective 18th May 2018.

Sahil has joined the Boards of these companies as a representative of the Owner Sponsor Group led by Mr. Analjit Singh. He joined the Max Group in 2016 with a focus on creating a powerful Real Estate brand – Max Estates and steering Max Ventures’ other businesses towards growth. He has diverse expertise across various sectors including consumer durables and real estate.

Since assuming his role at Max Ventures, he has successfully completed two key transactions which will have an enduring impact on its growth journey over the next few years – sale of a 22.5% stake in Max Ventures to a subsidiary of New York Life Insurance Company in January 2017; and the induction of Toppan Printing Co. Ltd, Japan (Toppan) as a joint venture partner with a 49% stake in Max Ventures’ legacy manufacturing business, Max Speciality Films (MSF). Besides MSF, he is currently overseeing two new business verticals – Max Estates Limited and Max I. Limited.

Commenting on Mr. Vachani’s appointment, Mr. Analjit Singh, Founder and Chairman Emeritus, Max Group said, “We initiated a leadership transition at the Max Group in 2011 to ensure independent professional management of the Group and its businesses. Sahil’s appointment as a representative of the sponsor group is an augmentation of both this model as well as the family’s commitment to grow the Life Insurance business with uncompromising governance standards.”

Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “I am delighted to welcome Sahil to the Boards of Max Life and MFS. In a short span of time, he has demonstrated leadership potential and led several strategic growth initiatives. I firmly believe that Sahil will provide a valuable and fresh perspective as we continue to pursue organic and inorganic growth and enhance value for all stakeholders.”

Sahil started his career as a banker with Citigroup in London, where he worked on Mergers and Acquisitions across the Middle East and Africa region. In 2004, he joined Dixon Technologies, a consumer appliance manufacturing firm as Business Head and setup new verticals across multiple locations and was involved in the launch of new products, setting up of new manufacturing facilities and establishing relationships with leading brands as customers. 

In 2008, he transitioned to a new role as Co-founder and Managing Director of Dixon Appliances Pvt. Ltd., where he led the business from its inception on multiple fronts, including designing of products, building the team, setting up the manufacturing facility, operations and building relationships with leading brands in India such as Panasonic, Godrej, LG, among others. The Company emerged as the single-largest third party contract manufacturer of Washing Machines for the Indian market. In July 2015, Mr. Vachani sold his shareholding in the company to devote complete attention to his role in the Max Group. 

 

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY2017, the Group recorded consolidated revenues of Rs. 16,798 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2017. The Group’s investor base includes marquee global financial institutions such as KKR, IFC Washington, Vanguard, Ward Ferry, New York Life, Nomura, Aberdeen, Temasek, Target Asset Management, Baron, Jupiter, Doric capital and Wasatch.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 3 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

 

About Max Life Insurance

Max Life Insurance offers comprehensive long term savings, protection and retirement solutions through its high quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record over the last 18 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘To be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

 

________________________________________________________________________
 

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

 For further information, please visit:
Max Group:
www.maxgroup.net
MFS:
www.maxfinancialservices.com 
https://www.facebook.com/themaxgroup: https://twitter.com/maxgroup 

Max Financial Services Q1 Consolidated Revenues1 grow 14% to Rs. 2,566 Cr.

Max Life Q1 FY2018 Highlights:

  • Revenues[1]: Rs. 2,560 Cr., grew 15%
  • New Sales: Rs. 554 Cr., grew 18%
  • Solvency Surplus: Rs. 1,953 Cr.; Solvency Ratio: 295%

 

9th Aug 2017, New Delhi

Max Financial Services Ltd. (MFS) today announced financial results for the first quarter of financial year 2017-18 (Q1 FY2018). MFS, one of the only two listed companies providing pure access to the Indian private life insurance sector, reported strong financials with consolidated revenues1 of Rs. 2,566 Cr., growing 14% over the previous year.

MFS’ sole operating subsidiary Max Life Insurance reported revenues1 of Rs 2,560 Cr., growing 15% over the same period last year. In Q1, Max Life reported New Sales of Rs 554 Cr., growing 18%, while Individual Adjusted Sales totalled Rs. 458 Cr., growing 19% over last year. The company’s normalised2 Shareholders’ Profit Before Tax in Q1 was Rs. 106 Cr., in line with last year. Max Life also reported a Solvency Surplus of Rs. 1,953 Cr., with a healthy Solvency Ratio of 295% and the company’s Assets Under Management, as at 30th June 2017, stood at Rs. 45,870 Cr, making it the 5th largest fund manager among private life insurers in India.

Earlier this year, Max Life had announced its Embedded Value3, which stood at Rs. 6,590 Cr. as at 31st March 2017 with an Operating Return on EV (RoEV) of 20%. The Value of New Business (VNB) written during FY2017 was Rs 499 Cr, growing 29% over the previous year, and the new business margin stood at 18.8%.

Commenting on the Company’s performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “Following a year of unprecedented growth in financial year 2017, Max Life’s performance in the first quarter of financial year 2018 has laid a strong foundation for steady organic growth in the near future. In the coming months, it will be our priority to optimise market share and profitability while focusing on organic and  inorganic growth opportunities.”

Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd. said, “A robust growth of 19% in Individual Adjusted Sales further cements Max Life’s position as one of the leading life insurers in the country. While our key bancassurance partnerships including those with Axis Bank and Yes Bank continue to contribute significantly to our growth, we will pay special attention to driving profitable growth in our proprietary channels such as Corporate Agency and e-Commerce. With a strong emphasis on solvency and embedded value growth, we will continue to ensure the best returns to our stakeholders.”

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY2017, the Group recorded consolidated revenues of Rs. 16,798 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2017. The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Vanguard, Ward Ferry, New York Life, Morgan Stanley, Nomura, Temasek and Wasatch .

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 3 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

 

About Max Life Insurance

Max Life Insurance offers comprehensive long term savings, protection and retirement solutions through its high quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record over the last 17 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘To be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

[1] Excludes Max Life Unit Investment Income

[2] Excludes the impact of One-off items from last year

[3] EV post final shareholder dividend

________________________________________________________________________

 

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

 For further information, please visit:
Max Group:
www.maxgroup.net
MFS:
www.maxfinancialservices.com 
https://www.facebook.com/themaxgroup: https://twitter.com/maxgroup 

Max merger with HDFC Life called off

31st Jul 2017 New Delhi

Max Financial Services (MFS), Max India and Max Life today confirmed that the proposed merger with HDFC Life has been called off. The exclusivity agreement with HDFC Life, valid till 31st July 2017, will not be renewed.

The prospective partners had evaluated several alternate structures over the last month. However, the inordinate time associated with finalization and approval of these structures led to this decision.

Max Financial Services was created in 2016, as a result of a demerger of the erstwhile Max India, to provide investors specific and undiluted access to the Group’s life insurance business, provide sharper focus to Max Life and unlock shareholder value. This demerger resulted in significant value creation based on the strong intrinsic value and superior performance of Max Life.

The quality of the Max Life business, its superior performance in the market, and the unique position of MFS as a listed entity with sole focus on the life insurance business, made Max Life and MFS attractive potential merger partners for HDFC Life. Max was therefore approached with this merger proposition.

Max Life has grown into one of India’s largest, fastest-growing and highest quality private life insurance businesses. The business’ success comes through in a comprehensive set of parameters including sales, profits and customer retention and is driven by digital thinking, operational efficiencies, a robust and diversified distribution architecture, highly engaged bancassurance partners, a profitable own agency force and a highly competent and engaged talent pool led by a top quality leadership team.

The company delivered its best performance since inception in FY 2017. It continues to remain strong and is poised for out-performance as the life insurance industry witnesses a return to growth. It reported consolidated revenues of Rs. 12,971 Cr. and shareholder Profit before Tax of Rs.  768 Cr. (50% YoY growth). Its Embedded Value (EV) stands at Rs 6,590 Cr., with 20% Operating Return on EV. Its Assets under Management (as at 31st Mar. 2017) are Rs. 44,370 Cr., a 24% growth over last financial year.

The company will continue on its path to aggressively invest in organic and inorganic growth levers. This will be done through investments in enhancing own channels such as agency and digital, delivering superior policyholder experience, deepening and leveraging existing bancassurance partnerships, and forging new distribution alliances. In addition, it will pursue acquisition opportunities as the industry further consolidates.

Max Life is committed and confident of delivering superior value to all its stakeholders to become India’s most admired life insurance company.

 

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY 2017, the Group recorded consolidated revenues of Rs. 16,798 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2017. The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Fidelity, Vanguard, Ward Ferry, New York Life, Wasatch and Invesco.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

 

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

 

About Max Life Insurance Company Limited

Max Life Insurance offers comprehensive long term savings, protection and retirement solutions through its high quality agency distribution and multi-channel distribution partners. A financially stable company with a strong track record over the last 17 years, Max Life Insurance offers superior investment expertise. Max Life Insurance has the vision ‘To be the most admired life insurance company by securing the financial future of our customers’. The company has a strong customer-centric approach focused on advice-based sales and quality service delivered through its superior human capital.

 

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213


Embedded Value[1] at Rs 6,590 Cr., 20% Operating Return on EV

FY2017 Results Highlights:

  • Max Life Value of New Business: Rs. 499 Cr, grew 29%
  • MFS Consolidated Revenues[2]: Rs. 12,971 Cr., grew 19%
  • MFS Consolidated Net Profit3: Rs 395 Cr., grew 56%
  • Max Life Shareholder PBT: Rs. 768 Cr., grew 50%
  • Max Life Assets Under Management (as at 31st 2017): Rs. 44,370 Cr., grew 24%

30th May 2017, New Delhi

Max Financial Services Ltd. (MFS) today announced financial results for the fourth quarter (Q4 FY2017) and financial year 2016-17 (FY2017). MFS, which is the first of only two listed companies providing pure access to the Indian private life insurance sector, reported strong financial growth with consolidated revenues2 of Rs. 12,971 Cr. and consolidated Net Profit3 of Rs. 395 Cr. in FY2017, growing 19% and 56%, respectively, over the previous year.

In Q4 FY2017, the Company reported consolidated revenues2 of Rs. 4,316 Cr., and Net Profit[3] of Rs. 118 Cr., growing 17% and 134%, respectively.

MFS’ sole operating subsidiary Max Life Insurance showcased robust growth on all business parameters, marking FY2017 as its strongest performance of the decade. In Q4 FY2017, the company reported revenues of Rs 4,309 Cr. and PBT of Rs. 219 Cr., growing 17% and 99%, respectively, over the same period last year.

In FY2017, Max Life reported Individual Adjusted Sales of Rs 2,639 Cr., growing 25% and revenues of Rs. 12,937 Cr., growing 19%. Max Life reported Shareholders’ Profit Before Tax of Rs. 768 Cr., growing 50% due to strong revenue growth, higher realised investment income, and favourable product mix. Max Life’s Embedded Value stood at Rs. 6,590 Cr. as at 31st March 2017 with an Operating Return on EV (RoEV) of 20%. The Value of New Business (VNB) written during FY2017 was Rs 499 Cr, growing 29% over the previous year, and the new business margin stood at 18.8%, Max Life’s Assets Under Management (AUM) stood at Rs. 44,370 Cr. as at 31st March 2017, growing 24% over last year. While Max Life maintained its overall market share at 9% in FY2017, it hit an important milestone in its digital journey by transitioning from a challenger to a market leader in Online Term Sales. Max Life’s e-Commerce channel reported an overall growth of 89% in FY2017.

Commenting on the Company’s performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “Over the last two decades, Max Life has grown into one of the largest, fastest-growing and highest quality private life insurance businesses driven by market leading performance across key parameters, operational efficiencies, a robust and diversified distribution architecture, a profitable agency force and significant growth potential. It speaks volumes of the company’s underlying strength that even at a stage of maturity in 2017, the business has delivered its strongest financial performance in 10 years.”

Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd. said, “Max Life has delivered a stupendous performance with a 20% operating return on embedded value and a 29% growth in value of new business. Max Life will continue to lay strong emphasis on profitability, solvency and embedded value growth to ensure the best returns to its stakeholders.”

In August 2016, the Board of Directors of Max Life Insurance Company, Max Financial Services Ltd., Max India Limited and HDFC Standard Life Insurance Company Ltd. (HDFC Life), at their respective meetings had finalized agreements for the amalgamation of business between the entities through a composite Scheme of Arrangement. Currently, both the entities are in the process of seeking regulatory approvals.

 

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY2017, the Group recorded consolidated revenues of Rs. 16,798 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2017. The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Fidelity, Vanguard, Ward Ferry, New York Life, Wasatch and Invesco.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

________________________________________________________________________

[1] EV post final shareholder dividend

2 Excludes Max Life Unit Investment Income

3 After adjusting for minority interest

 

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

 

 

Q3 FY2017 Results Highlights:

  • MFS Consolidated Revenues1: Rs. 3,349 Cr., grew 26%
  • Max Life AUM as at 31st 2016: Rs. 40,920 Cr., grew 20%

 

10th February 2017, New Delhi

Max Financial Services Ltd. (MFS) today announced financial results for the third quarter of FY2017 (Q3 FY2017). MFS, which is the first of only two listed companies providing pure access to the Indian private life insurance sector, reported strong growth in topline and bottomline with consolidated revenues1 of Rs. 3,349 Cr. and consolidated Profit after Tax (PAT)2 of Rs. 160 Cr. in Q3 FY2017, growing 26% and 52%, respectively, over the corresponding period last year.

In the nine months so far (9M FY2017), the Company has reported consolidated revenues of Rs. 8,655 Cr., and PAT2 of Rs. 416 Cr., growing 21% and 34%, respectively.

MFS’ sole operating subsidiary Max Life Insurance performed strongly on all business parameters maintaining its position as the best-in-class provider of long-term savings and protection products. In Q3 FY2017, Max Life reported Individual Adjusted Sales of Rs 654 Cr., growing 41%, revenues1 of Rs. 3,341 Cr., growing 26%, and PAT of Rs. 177 Cr, growing 50% over the same period last year. In 9M FY2017, the business reported Individual Adjusted Sales of Rs 1,590 Cr., revenues1 of Rs. 8,626 Cr. and PAT of Rs 463 Cr., growing 26%, 21% and 36%, respectively, over the same period last year.

Max Life’s Assets Under Management (AUM) stood at Rs. 40,920 Cr. as at 31st December 2016, growing 20% over last year.

In August 2016, the Board of Directors of Max Life Insurance Company, Max Financial Services Ltd., Max India Limited and HDFC Standard Life Insurance Company Ltd. (HDFC Life), at their respective meetings had finalized agreements for the amalgamation of business between the entities through a composite Scheme of Arrangement. In the ensuing period, both the entities have progressed with regulatory approvals as planned.

Commenting on the Company’s performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “Max Life is one of the fastest-growing life insurers in India which maintains its core proposition of offering long-term savings and protection products through a well diversified distribution architecture comprising market-leading agency and bancassurance capabilities supported by high-quality service and returns to policyholders.”

 

Sharing an update on the status of the proposed merger of Max Life with HDFC Life, Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd. said, “We have made initial regulatory filings and approvals are being progressed. We have also made our representation to IRDAI on the structure of the merger and are currently awaiting their response. While we progress on the proposed merger, Max Life continues to be one of the fastest-growing private life insurers with a strong emphasis on profitability, solvency and embedded value growth. At the same time, ensuring high levels of customer satisfaction within the framework of TCF policies remains a priority for the business.”

The proposed merger is subject to applicable board, shareholder, regulatory, respective High Courts and other third-party approvals.

 

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY 2016, the Group recorded consolidated revenues of Rs 14,237 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2016.The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Fidelity, Ward Ferry, New York Life, Wasatch and Invesco.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

1 Excludes Max Life Unit Investment Income

2 Before adjusting for minority interest

 

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

  • Operating RoEV: 17%
  • Value of New Business during first half of FY2017 (H1 FY2017): Rs. 183 Cr.
  • New business margin (before cost overrun): 19.2%

25th November 2016, New Delhi

Max Financial Services Limited (MFS) today announced the Embedded Value (EV) for its life insurance business, Max Life, at Rs. 6,204 Cr. as at 30th September 2016, based on Market Consistent methodology. The annualised growth in EV for H1 FY2017 is an impressive 22% before accounting for interim shareholder dividend. The Value of New Business (VNB) written during H1 FY2017 is Rs 183 Cr. with the new business margin at a strong 19.2%, before cost overrun, and 18.5%, after cost overrun. The improvement in the new business margin to 19.2% from 18.3% reported as at 31st March 2016, is primarily due to an increase in the proportion of non-participating products.

Commenting on the growth in EV, Mr. Rahul Khosla, President, Max Group said, “The robust EV and new business margin reflect strong fundamentals both on the existing business as well as a continued focus on profitable new business, further strengthening Max Life’s position as the best-in-class provider of long-term savings and protection products.”

Mr. Mohit Talwar, Managing Director, MFS said, “The EV and Value of New Business are important metrics for the valuation of any life insurance business as the company is generally valued at a multiple to its EV.  A robust growth in Value of New Business was the primary driver of the increase in Max Life’s EV. It was also aided by gains from favourable equity and interest rate movements.”

The EV of a life insurance company comprises two key elements — a) Net Asset Value or the Net Worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and b) the Present Value of the company’s future expected profits from its existing business portfolio as at the date of valuation.

Max Life had transitioned its EV calculation to a Market Consistent methodology from the earlier traditional approach (Traditional Embedded Value – TEV) in FY2015. This follows market practice in developed markets, where life insurers have moved to adopt market consistent methodologies.

A market consistent methodology approach better reflects the embedded value of an insurance company by explicitly and specifically allowing for insurance and economic risks rather than using an implicit overall allowance for risks through a Risk Discount Rate (RDR) in the traditional approach. In addition, the market-consistent approach is more objective where asset and liability cash flows are valued using assumptions consistent with those applied to similar cash flows in the capital markets, thus more accurately reflecting the health of the business.

 

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY 2016, the Group recorded consolidated revenues of Rs 14,237 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2016.The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Fidelity, Ward Ferry, New York Life, Wasatch and Invesco.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

 

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

H1 FY2017 Results Highlights:

  • MFS Consolidated Revenues*: Rs. 5,306 Cr., grew 18%
  • Max Life Revenues*: Rs. 5,286 Cr., grew 17%; Shareholder Profits: Rs. 344 Cr., grew 31%
  • Max Life AUM as at 30th Sep 2016: Rs. 39,647 Cr., grew 21%

 

4th November 2016, New Delhi

Max Financial Services Ltd. (MFS), the first company to be listed following the demerger of the erstwhile Max India, today announced impressive financial results for the first half of FY2017. MFS, which was India’s first listed company providing pure access to the life insurance sector, reported strong performance, with consolidated revenues of Rs. 5,306 Cr*. and consolidated Profit Before Tax (PBT) of Rs. 313 Cr. in H1 FY2017, growing 18% and 27%, respectively, over the corresponding period last year.

In Q2 alone, the Company reported consolidated revenues and PBT of Rs. 3,064 Cr. and Rs. 175 Cr., growing 18% and 26% over Q2 FY2016, respectively.

MFS’ sole operating subsidiary Max Life Insurance performed strongly on all business parameters maintaining its position as the best-in-class provider of long-term savings and protection products. Max Life reported revenues* of Rs. 5,286 Cr. in H1 FY2017, growing 17% over the same period last year, while New Sales in the first half of the year, increased 22% to Rs. 1,120 Cr. The company also reported Shareholders’ PBT of Rs. 344 Cr., 31% higher compared to last year.

Max Life’s Assets Under Management (AUM) stood at Rs. 39,647 Cr. as at 30th September 2016, growing 21% over last year.

In August 2016, the Board of Directors of Max Life Insurance Company, Max Financial Services Ltd., Max India Limited and HDFC Standard Life Insurance Company Ltd. (HDFC Life), at their respective meetings had finalized agreements for the amalgamation of business between the entities through a composite Scheme of Arrangement. In the ensuing period, both the entities have progressed with regulatory approvals as planned.

Commenting on MFS’ performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “Max Life Insurance has steadily grown to become one of the largest and fastest-growing private life insurers in the country. As we work towards completing the proposed merger with HDFC Life over the next few months, we will continue to focus on our strengths of selling long-term savings and protection products, through a well balanced distribution architecture including productive bancassurance partnerships and a profitable agency force  while ensuring the best returns and protection for our policyholders.

Sharing an update on the status of the proposed merger of Max Life with HDFC Life, Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd. said, “Since the signing of the definitive agreement in August, we have made satisfactory progress in the regulatory filings process and approvals are expected as per anticipated timelines. We have filed applications with the Competition Commission of India, the Insurance Regulatory and Development Authority of India (IRDAI) as well as both the National Stock Exchange and the Bombay Stock Exchange.”

The proposed merger is subject to applicable board, shareholder, regulatory, respective High Courts and other third-party approvals.

 

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY 2016, the Group recorded consolidated revenues of Rs 14,237 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2016.The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Fidelity, Ward Ferry, New York Life, Wasatch and Invesco.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

Q1 FY2017 Results Highlights:

  • Consolidated PBT : Rs. 139 Cr., grew 30%
  • Max Life AUM as at 30th June 2016: Rs. 37,701 Cr., grew 18%

 

8th August 2016, New Delhi

Max Financial Services Ltd. (MFS), the first company to be listed following the demerger of the erstwhile Max India, today announced impressive financial results for the first quarter of FY2016-17. MFS, which is India’s only listed company providing pure access to the life insurance sector, reported strong performance, with consolidated operating revenues of Rs. 2,242 Cr. and consolidated Profit Before Tax (PBT) of Rs. 139 Cr. in Q1 FY2017, growing 17% and 30%, respectively, over the corresponding period last year.

MFS’ sole operating subsidiary Max Life Insurance performed well on all business parameters in the first quarter, maintaining its position as the best-in-class provider of long-term savings and protection products. Max Life reported operating revenues of Rs. 2,234 Cr. in Q1 FY2017, growing 17% over the same period last year, while New Sales in the quarter increased 25% to Rs. 469 Cr. The subsidiary also reported Shareholders’ PBT of Rs. 155 Cr., 31% higher compared to last year.

Max Life’s Assets Under Management (AUM) stood at Rs. 37,701 Cr. as at 30th June 2016, growing 18% over last year.

Max Life has earlier announced its Embedded Value Rs 5,617 Cr. as at 31st March 2016, after allowing for a payout of Rs 439 Cr. as shareholder dividend (including tax on dividend) in FY2016. The Value of New Business (VNB) written during FY2016 was Rs 388 Cr. with a Portfolio New Business Margin of 18.3% (before cost overruns) and 17.9 per cent (after cost overruns).

In June 2016, the Board of Directors of Max Life Insurance Company, Max Financial Services Ltd. and HDFC Standard Life Insurance Company Ltd. (HDFC Life), at their respective meetings had approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life and Max Financial Services into HDFC Life by way of a scheme of arrangement. A definitive three-way agreement was finalized and signed earlier today in Mumbai.

The proposed arrangements would be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory, respective High Courts / NCLT, and other third party approvals, as may be applicable.


 

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY 2016, the Group recorded consolidated revenues of Rs 14,237 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2016.The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Temasek, Fidelity and New York Life.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a 68 per cent stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

  • Proposed Transaction creates a Rs 255 Bn annual premium company differentiated portfolio and wider reach to expand in a growing life insurance sector
  • Delivers attractive value proposition for HDFC Life and Max Group shareholders, with significant operating leverage and synergies
  • Policyholders to benefit from enhanced product portfolio and touch points
  • Employees will have greater opportunities across functions and geographies
  • Agents and corporate agents (including HDFC Bank and Axis Bank) will continue their strategic distribution partnership with HDFC Life the merged insurance entity
  • After completion of the proposed Transaction, HDFC Life would be listed on the NSE and BSE

Mumbai, August 8, 2016: The Board of Directors of HDFC Standard Life Insurance Company Ltd.(“HDFC Life”), Max Life Insurance Company Ltd. (“Max Life”), Max Financial Services Ltd. (“Max Financial Services”) and Max India Ltd. (“Max India”) at their respective meetings held today, approved entering into definitive agreements for amalgamation of business between the entities through a composite Scheme of Arrangement. As a part of the proposed transaction, the life insurance business of Max Financial Services, currently held in Max Life, would demerge into HDFC Life.

As per the agreed valuation and exchange ratio, the relative valuation of HDFC Life and Max Life would be 69% and 31% respectively.

For the merger of Max Life into Max Financial Services, shareholders of Max Life will get one share of Max Financial Services for approximately five shares of Max Life. For the demerger of the life insurance undertaking from Max Financial Services into HDFC Life, shareholders of Max Financial Services (post the amalgamation with Max Life), will get 2.33 shares of HDFC Life for each share of Max Financial Services.

As a part of the proposed transaction, in consideration of the non-compete and non-solicitation obligations undertaken by the Promoter Group of Max Financial Services, and for the goodwill attached to the life insurance products and the business of Max Life, the merged insurance entity will be paying a non-compete fee to the Promoter Group of Max Financial Services. The term of Non-Compete would be 4 years since the payment of an upfront fee of Rs 501 crore which will be payable post completion of the proposed transaction. This will be followed by three equal annual installments totaling Rs 349 crore.

HDFC Life has also entered into a Trademark License Agreement to use the ‘Max’ brand as part of life products that will transition from Max Life, for seven years post completion of the proposed transaction.

HDFC Ltd. and Standard Life (Mauritius Holdings) 2006 Ltd. will be the promoters of HDFC Life the merged entity, post completion of the proposed transaction. HDFC Ltd. will cease to be the holding company of HDFC Life post completion of the proposed transaction and will hold ~42.5% of HDFC Life(based on shareholding as on June 30, 2016).

The proposed transaction brings together two large life insurance players with complementary capabilities. The merged insurance entity on Pro-Forma basis has a combined market share of 10.8% in an extremely competitive life insurance market. The product mix of HDFC Life and Max Life complements each other. The merged insurance entity will also have a diversified distribution mix with the contribution (excluding group segment) based on FY16 new business premium being agency 19%, bancassurance 64%, direct 11% and others 5%. On completion, HDFC Life is expected to have bancassurance partnerships with leading banks including HDFC Bank and Axis Bank. The proposed transaction is expected to result in a wider product suite and enhanced service touch points for customers.

The merger is expected to result in significant financial benefits to shareholders and policy-holders of the merged insurance entity, through revenue enhancements from a wider customer base and product suite, additional upsell & cross sell opportunities, enhanced distribution capacity and productivity, as also via scale based synergies. Revenue synergies will accrue due to a wider customer base and product suite providing additional upsell & cross sell opportunities, to compete more effectively in the market.

Max Financial Services will seek an upfront approval of their public shareholders (greater than 50% of the votes cast) for payment of the non-compete fee and Max Life will seek consent from its shareholders holding more than 75% stake for the proposed transaction. Separately, Max India will also seek an upfront approval of its public shareholders for the proposed transaction.

The proposed transaction will also need approval by a majority of shareholders present and voting at the Court convened shareholder meetings of each of HDFC Life, Max Life, Max Financial Services and Max India.

The closing of the proposed transaction will also be subject to certain conditions precedent, including regulatory approvals such as approval by the Insurance Regulatory and Development Authority of India, Competition Commission of India, The Securities and Exchange Board of India, stock exchanges and Hon’ble High Courts amongst others.

Upon obtaining all approvals, when the scheme becomes effective, the following steps will occur in that order:

– Max Life will merge into Max Financial Services
– Demerger of the life insurance undertaking from Max Financial Services into HDFC Life (ie, the
merged insurance entity)
– Merger of Max Financial Services (holding the residual business) into Max India
– HDFC Life, ie the merged insurance entity, would become a listed company, with HDFC Ltd. and
Standard Life (Mauritius Holdings) 2006 Ltd. as the promoters

The proposed transaction is expected to become effective in the next 12-15 months.

Commenting on the proposed transaction, Mr. Deepak Parekh, Chairman of HDFC Ltd. said “We are proud to announce our association with the Max Group and the strategic nature of this transaction. We view this merger as long term value creation for shareholders of HDFC Life.”

Mr. Analjit Singh, Founder & Chairman Emeritus of Max Group said “Max Life and HDFC Life have complementary strengths which would make this merger hugely beneficial for all stakeholders including customers, employees, distribution partners and investors.”

Mr. Amitabh Chaudhry, CEO & MD of HDFC Life said “We are extremely excited about the proposed transaction. The combination will give us a much larger scale of operations. We are looking forward to work closely with Max Life employees and customers and build a strong franchise.”

Mr. Rahul Khosla, President of Max Group and Chairman, Max Life said, “This transaction is testimony to the reputation that Max Life has built over the years, for being a well-run, well-managed company with strong fundamentals.”

Mr. Mohit Talwar, Managing Director, Max Financial Services and Max India, said, “This transaction would create an entity that will bring all-round and significant benefits to customers and employees alike and will prove to be a truly value-accretive business for investors from the very beginning.”

Transaction Advisors

Arpwood Capital acted as the lead financial advisor and Morgan Stanley acted as the financial advisor to HDFC Life. Shardul Amarchand Mangaldas acted as the legal advisor to HDFC Life. AZB & Partners (Mumbai team) advised HDFC Ltd. and Cyril Amarchand Mangaldas (Mumbai team) represented Standard Life (Mauritius Holdings) 2006 Ltd.

Ambit acted as the financial advisor to Max Life. AZB & Partners (Delhi team) acted as legal advisor to Max Life and Max Financial Services and Cyril Amarchand Mangaldas (Bangalore team) advised MSI,Japan.

S.R. Batliboi & Co. LLP recommended the share exchange ratio for the merger of Max Life into Max Financial Services. Haribhakti & Co. LLP and S.R. Batliboi & Co. LLP, appointed by HDFC Life and Max Financial Services respectively, recommended the share exchange ratio for the demerger of the life insurance undertaking from Max Financial Services into HDFC Life.

Citigroup Global Markets India Private Limited and Kotak Mahindra Capital Company Limited provided fairness opinion to the Board of HDFC Life and CLSA India Private Limited provided fairness opinion to the Board of Max Financial Services.

About HDFC Life

HDFC Life is one of the leading life insurance companies in India offering a range of individual and group insurance solutions that meet various customer needs such as Protection, Pension, Savings & Investment and Health, along with Children’s & Women’s Plan. The total premiums for the year ending March 31, 2016 were Rs. 16,313 crores and total AUM as of March 31, 2016 was Rs. 74,247 crores.

About Max Life

Max Life, the leading non-bank promoted private life insurer, is a joint venture between Max Financial Services and Mitsui Sumitomo Insurance Co. Ltd. Max Life offers comprehensive long term savings,protection and retirement solutions through its high quality agency distribution and multi-channel distribution partners. The total premiums for the year ending March 31, 2016 were Rs. 9,216 crores and total AUM as of March 31, 2016 was Rs. 35,824 crores.

About Max Financial Services

Max Financial Services, a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. Max Financial Services actively manages a 69% stake in Max Life, making it India’s first listed company focused exclusively on life insurance.

17 June 2016, Mumbai

The Board of Directors of HDFC Standard Life Insurance Company Ltd.(“HDFC Life”), Max Life Insurance Company Ltd. (“Max Life”) and Max Financial Services Ltd. (“Max Financial Services”) at their respective meetings held today, approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life and Max Financial Services into HDFC Life by way of a scheme of arrangement. The agreement provides for a mutually agreed exclusivity period for due diligence and discussions between the parties in relation to a proposed transaction.

The proposed arrangements would be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory, respective High Courts / NCLT, and other third party approvals, as may be applicable.

Follow up announcements shall be made as necessary.

About HDFC Life

HDFC Life is one of the leading life insurance companies in India offering a range of individual and group insurance solutions that meet various customer needs such as Protection, Pension, Savings & Investment and Health, along with Children’s & Women’s Plan. The total premiums for the year ending March 31, 2016 were Rs. 16,313 crores and total AUM as of March 31, 2016 was Rs. 74,247 crores.

About Max Life

Max Life, the leading non-bank promoted private life insurer, is a joint venture between Max Financial Services and Mitsui Sumitomo Insurance Co. Ltd. Max Life offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners. The total premiums for the year ending March 31, 2016 were Rs. 9,216 crores and total AUM as of March 31, 2016 was Rs. 35,824 crores.

About Max Financial Services

Max Financial Services, a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. Max Financial Services actively manages a 68% stake in Max Life, making it India’s first listed company focused exclusively on life insurance.

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Anshuman Dutta
[email protected]
+91 9971553969

FY2016 Results Highlights:

  • Max Life’s Operating Revenues: Rs 9,139 Cr., grew 13%
  • Max Life EV as at 31st March 2016: Rs 5,617 Cr; Operating Return on EV: 17%
  • Max Life AUM as at 31st March 2016: Rs. 35,824 Cr., grew 15%

31 May 2016, New Delhi

Max Financial Services Ltd. (MFS), the first company listed following the demerger of the erstwhile Max India, today announced its financial results for FY2015-16. MFS, which is India’s only listed company providing undiluted access to the life insurance sector, reported strong performance, with consolidated operating revenues of Rs. 3,257 Cr. and consolidated Profit Before Tax (PBT) of Rs. 92 Cr. in Q4 FY2016.

Over the past financial year, the Company reported consolidated operating revenues of Rs.  9,173 Cr., and a consolidated PBT of Rs. 465 Cr.

MFS’ sole operating subsidiary Max Life Insurance performed well on all business parameters in FY2015-16, further strengthening its position as the best-in-class provider of long-term savings and protection products. Max Life reported operating revenues of Rs. 3,243 Cr. in Q4 FY2016, growing 20% over the same period last year. For the full financial year, Max Life’s operating revenues stood at Rs. 9,139 Cr., 13% higher than the previous year. During this period, the Company reported PBT of Rs. 511 Cr, growing 7% over the corresponding period last year.

Max Life also announced its Embedded Value as at 31st March 2016 at Rs 5,617 Cr., after allowing for a payout of Rs 439 Cr. as shareholder dividend (including tax on dividend) in FY2016. This represents an Operating Return on EV (RoEV) for FY2016 of 17%. The Value of New Business (VNB) written during FY2016 was Rs 388 Cr. with a Portfolio New Business Margin of 18.3% (before cost overruns) and 17.9 per cent (after cost overruns).

The Company’s Assets Under Management (AUM) stood at Rs. 35,824 Cr. as at 31st March 2016, growing 15% over the same period last year.

Commenting on MFS’ performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “Max Life Insurance has been on a steady growth trajectory over the past five years, establishing itself as the largest non-bank-owned private life insurer. With the demerger providing sharper focus to the business, Max Life is now in a position to deliver new avenues of growth, including through bancassurance and acquisition opportunities.”

Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd., added, “Max Life has ended an already stellar year at a high, delivering its highest ever sales in any quarter of Rs. 936 Cr. With the right vision, strategy and leadership, Max Life is well placed for another successful year.”

In January 2016, the Max Group concluded a mega corporate restructuring wherein the erstwhile Max India was demerged into three separate entities, Max Financial Services, Max India and Max Ventures & Industries. The original company was renamed Max Financial Services and the ex-demerger stock of MFS started trading from 27th January 2016. The other two demerged entities, Max India and Max Ventures & Industries, will be listed on Indian stock exchanges in June 2016.

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY 2016, the Group recorded consolidated revenues of Rs 14,237 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2016.The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, IFC Washington, Temasek, Fidelity and New York Life.

The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a 68 per cent stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

Max Financial Services Limited Makes its Listing Debut with Stellar Profits

  • Max Financial Services’ Consolidated PBT for Q3FY16: Rs. 127 Cr.
  • Max Life Operating Revenues for Q3FY16: Rs 2,243 Cr., grew 10%
  • Max Life shareholder pre-tax profits for Q3FY16: Rs 140 Cr., grew 92%
  • Max Life AUM: Rs 34,079 Cr, grew 16%

 

12 February 2016, New Delhi

Max Financial Services Ltd. (MFS), the first company to be listed following the recently concluded demerger of the erstwhile Max India today announced its first set of financial results.

MFS, which is India’s only listed company providing pure access to the life insurance sector, reported strong performance, with consolidated operating revenues of Rs. 2,248 Cr. and consolidated Profit Before Tax (PBT) of Rs. 127 Cr. in Q3 FY2016.

For the first 9 months of FY2016, the Company reported consolidated operating revenues of Rs. 5,916 Cr. The Company’s consolidated PBT during these 9 months stood at Rs. 373 Cr.

Max Life Insurance, the sole operating subsidiary held by MFS, continued its consistent growth trajectory in Q3FY16, with operating revenue growing 10% to Rs. 2,243 Cr. and profits before tax growing 92% to Rs. 140 Cr. over the same period last year.

The Company’s Assets Under Management (AUM) stood at Rs. 34,079 Cr. as at 31st December 2015, growing 16% over the same period last year.

With an Embedded Value of Rs. 5,363 Cr. as at 30th September 2015 and a growth of ~15% in Operating EV for H1FY2016, Max Life Insurance continues to differentiate itself in the market based on its advice based sales, diversified distribution architecture and comprehensive product portfolio which have helped it achieve profitable growth.

Commenting on the Company’s performance, Mr. Rahul Khosla, President, Max Group said, “The primary objective of the demerger was to give investors undiluted access to our life insurance business. These results clearly demonstrate the underlying strength of this business. I am confident that our commitment to core values and sound business strategy will enable us to continue delivering superior results in the future.”

Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd., added, “Max Life has consistently outperformed the industry over the years and with sharper focus from MFS, I am confident we will continue on a path of sustained profitability and growth in the coming years.”

In January 2016, the Max Group concluded a mega corporate restructuring wherein the erstwhile Max India was demerged into three separate entities, Max Financial Services, Max India and Max Ventures & Industries. The original company was renamed Max Financial Services and the ex-demerger stock of MFS started trading from 27th January 2016. The other two demerged entities, Max India and Max Ventures & Industries, will be listed on Indian stock exchanges in March 2016.

 

About Max Financial Services Limited

Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a 72 per cent stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan-headquartered global leader in life insurance.

 

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

 

Record date for demerger on 28th January
The company is being renamed as Max Financial Services
20 Jan 2016 New Delhi

The Max Group, one of India’s leading conglomerates, announced the record date for the recently concluded demerger, as 28th Jan 2016. The shares of Max India will start trading ex-demerger from 27th Jan 2016. The existing company is in the process of being renamed as Max Financial Services.
Max India demerged into three separate companies on 15th Jan 2016, to give investors specific and undiluted access to the Group’s diverse lines of businesses, provide sharper focus to each operating business and unlock shareholder value. The first listed company, Max Financial Services Limited (MFS) will focus on managing the Group’s flagship life insurance business, through its 72% shareholding in Max Life, making it the first Indian listed company exclusively focused on life insurance.
The second holding company, which retains the name Max India Limited, will manage investments in the high potential Health and Allied businesses – Max Healthcare, Max Bupa and Antara Senior Living. The demerger will provide these businesses, which are currently in their growth and development phases, closer attention to fulfill their tremendous potential.
The third holding company, Max Ventures & Industries Limited (MVIL) will manage the investment in the manufacturing subsidiary, Max Speciality Films, which is an innovation leader in the Speciality Packaging Films business. It will also evaluate new ideas in the ‘wider world of business’, including but not limited to sectors such as education, real estate and technology taking cues from the economic and commercial reforms agenda of the present Government, including ‘Make in India’, ‘Skill India’, ‘Digital India’, among others.
The two additional resultant companies Max India and Max Ventures & Industries Limited (MVIL) are expected to list on the stock exchanges by mid-march.
Following the demerger, the Group also announced the transition of Analjit Singh to the position of Founder & Chairman Emeritus, Max Group. He will continue to the Chairman of MVIL. Rahul Khosla has been elevated to the highest executive position in the Group, as President, Max Group, as part of a planned and orderly succession process that commenced with his appointment as Managing Director, Max India, in 2011. He will be Executive President of Max Financial Services and Chairman of Max India. Mohit Talwar, Deputy Managing Director of Max India, has been elevated to the position of Managing Director, Max Financial Services (MFS); Managing Director, Max India and Vice Chairman of MVIL.
Post restructuring, the erstwhile Max India’s existing shareholders will retain one equity share of Rs 2/- in Max Financial Services Limited. They will additionally get one equity share of Rs. 2/- each of the new company Max India Limited for every one equity share held in Max Financial Services and one equity share of Rs. 10/- each of Max Ventures and Industries Limited for every 5 equity shares of Rs. 2/- each held in Max Financial Services. The company has applied for approval from the Foreign Investment Promotion Board (FIPB) to enable issuance of the aforesaid new shares.
Even as all these changes will be implemented, the Group’s core values of Sevabhav, Excellence and Credibility will remain unchanged as it fulfils its commitments to its stakeholders and society.

About the Max Group
The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Healthcare & Allied businesses and packaging sectors. In FY ‘15, the Group recorded a consolidated turnover of Rs 14,877 Cr. It has a total customer base of over 7.5 million, nearly 300 offices spread across India and people strength of around 17,000 as on 31st March 2015.The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, IFC Washington, Temasek, Fidelity and New York Life.
The Max Group comprises three holding companies, namely:
Max Financial Services, the holding company for Max Life, India’s largest non-bank-owned, private life insurance company. Max Financial Services owns and actively manages a 72.1 per cent stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan- headquartered global leader in life insurance.
Max India, the holding company for Max Healthcare, Max Bupa Health Insurance and Antara Senior Living, is focused on health and allied businesses. Max Healthcare and Max Bupa Health Insurance are joint ventures with global leaders, Life Healthcare (South Africa) and Bupa Finance Plc. (UK), respectively. These businesses have well-entrenched positions in their respective categories, and are recognized for their outstanding service standards. The Company owns and actively manages a 46.4% per cent stake in Max Healthcare, a 76% stake in Max Bupa Health Insurance and a 100% stake in Antara Senior Living.
Max Ventures and Industries, the holding company for Max Speciality Films, an innovation leader in the Speciality Packaging Films business. In addition to manufacturing, the Company also serves as the Group’s entrepreneurial arm to explore the ‘wider world of business’, especially taking cues from the economic and commercial reforms agenda of the present Government, including ‘Make in India’, ‘Skill India’, ‘Digital India’, among others.
The two additional holding companies will be shortly listed on both the Bombay Stock Exchange as well as the National Stock Exchange.

For media queries please contact:
Nitin Thakur
[email protected]
+91 9873347428

Priyanka Guha
[email protected]
8373924991
Jayant Singh
[email protected]
+91 9999162213

Analjit Singh to be Founder & Chairman Emeritus, Max Group
Rahul Khosla to be President, Max Group
Mohit Talwar to be Managing Director of Max Financial Services and the demerged Max India
15th Jan 2016 New Delhi

The Max Group, one of India’s leading conglomerates, today announced the transition of Analjit Singh to the position of Founder & Chairman Emeritus, Max Group.
Rahul Khosla will be elevated to the highest executive position in the Group, as President, Max Group, as a part of a planned and orderly succession process that commenced with his appointment as Managing Director, Max India in 2011.
This leadership transition follows the demerger of the Group’s listed holding company Max India Limited into three separate listed companies to give investors specific and undiluted access to the Group’s diverse lines of businesses, provide sharper focus to each operating business and unlock shareholder value.
Analjit Singh formally stepped down from the Chairmanship and Board of the demerged entity Max Financial Services earlier today. He will step down from the Chairmanship and Board’s of the demerged Max India and the Group’s life insurance company, Max Life Insurance at their respective Board Meetings. Analjit will remain Chairman of Max Ventures and Industries (MVIL), as well as Chairman, Antara Senior Living. He will be a permanent invitee to the Boards and Committees of all Max Group companies. As Founder and Chairman Emeritus, Analjit will continue to provide guidance and vision to the Group and remain an invaluable guide to the Group’s Boards and executive management. He will also leverage his entrepreneurial skills and experience in incubating new businesses in MVIL and nurturing Antara to maturity.
In recognition of the need for continuity of leadership and representation, Rahul Khosla will assume the newly formed position of President, Max Group, which is the senior most executive position in the Group. Rahul will assume various roles in the Group’s companies – as Executive President of Max Financial Services; Chairman of Max India, Chairman of Max Life Insurance; and Chairman of Max Healthcare. He will also become a Member on the Board of Max Ventures and Industries subsequently. He will continue to be on the Boards of Max Bupa and Antara Senior Living and will be a permanent invitee to the Boards and Committees of all Max Group companies.
Speaking about the opportunities ahead for him, Rahul Khosla, President, Max Group, said, “I look to the future with a strong sense of enthusiasm. We have created a solid foundation by establishing a high performance culture, supported by a firm bedrock of values to achieve industry leadership in each of our businesses. Going forward, my focus will be to leverage this strong position and significantly grow our businesses, further strengthen governance, enhance our brand & reputation, optimize capital, and drive value creation for our stakeholders.”
Commenting on the leadership transition, Analjit Singh, Chairman Emeritus & Founder, Max Group, said, “This process of ‘passing of the baton’ from the ‘Founder Sponsor’ demonstrates an evolution, which very few Indian business groups have been able to accomplish and signals high standards of transparency, governance, and forward thinking.”
The other significant changes in the Group leadership are:
Mohit Talwar, currently Deputy Managing Director of Max India, is being elevated to the position of Managing Director, Max Financial Services (MFS) and Managing Director, Max India. In addition, Mohit will become Vice Chairman of Max Ventures and Industries Limited (MVIL) and Chairman of its subsidiary, Max Speciality Films. He will join the Board of Max Life Insurance and will continue to be a Director in all the other operating companies.
Rajesh Sud is being elevated to the position of Vice Chairman, Max Life Insurance while retaining his position as the company’s Managing Director. Rajesh will also continue to be Chairman, Max Bupa and will lead the Group’s activities in the insurance & financial services sector.
Naina Lal Kidwai joins the Max Group as Chairman of Max Financial Services (MFS). Naina has recently stepped down from the position of Chairman, HSBC India, and is an industry stalwart who does not need any introduction. Her expertise and experience will help shape the future for MFS and Max Life Insurance.
Tara Singh Vachani, CEO, Antara Senior Living, joins the Board of Max India Limited as a non- executive Director and has been elevated as Managing Director of Antara Senior Living.
Sahil Vachani will assume the position of Managing Director, Max Ventures and Industries (MVIL) and as a Board Member of its subsidiary Max Speciality Films. Sahil has several years of hands-on experience in managing and growing a manufacturing business which will be usefully applied to MVIL’s packaging business, MSF, as it seeks new avenues of growth. In addition, Sahil will drive entrepreneurial ventures for exploring the ‘wider world of business’ in MVIL.
The Boards of the three newly created holding companies were also reconstituted earlier today and are attached in the Annexure .

About Max Group
The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Healthcare & Allied businesses and packaging sectors. In FY ‘15, the Group recorded a consolidated turnover of Rs 14,877 Cr. It has a total customer base of over 7.5 million, nearly 300 offices spread across India and people strength of around 17,000 as on 31st March 2015.The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, IFC Washington, Temasek, Fidelity and New York Life.
The Max Group comprises three holding companies, namely:
Max Financial Services, the holding company for Max Life, India’s largest non-bank-owned, private life insurance company. Max Financial Services owns and actively manages a 72.1 per cent stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan- headquartered global leader in life insurance.
Max India, the holding company for Max Healthcare, Max Bupa Health Insurance and Antara Senior Living, is focused on health and allied businesses. Max Healthcare and Max Bupa Health Insurance are joint ventures with global leaders, Life Healthcare (South Africa) and Bupa Finance Plc. (UK), respectively. These businesses have well-entrenched positions in their respective categories, and are recognized for their outstanding service standards. The Company owns and actively manages a 46.4% per cent stake in Max Healthcare, a 76% stake in Max Bupa Health Insurance and a 100% stake in Antara Senior Living.
Max Ventures and Industries, the holding company for Max Speciality Films, an innovation leader in the Speciality Packaging Films business. In addition to manufacturing, the Company also serves as the Group’s entrepreneurial arm to explore the ‘wider world of business’, especially taking cues from the economic and commercial reforms agenda of the present Government, including ‘Make in India’, ‘Skill India’, ‘Digital India’, among others.
The two additional holding companies will be shortly listed on both the Bombay Stock Exchange as well as the National Stock Exchange.

Annexure:

  • Max Group companies architecture
  • Lists of:
    • Key position holders of all Holding and key Operating Companies
    • Board Members of all Holding and key Operating Companies

For information please contact:
Nitin Thakur
[email protected]
+91 9873347428

Jayant Singh
[email protected]
+91 9999162213
Beedisha Chakrabarti
[email protected]
+91 9899003192

Priyanka Guha
[email protected]
+91 8373924991

15th January, 2016, New Delhi

Max India Limited, one of India’s leading multi business corporates, today announced its demerger into three listed companies – Max Financial Services Ltd., Max India Ltd. and Max Ventures & Industries Ltd., to provide its investors with specific and undiluted access to its diverse lines of businesses, unlock shareholder value and enable sharper focus on each operating business.
The first holding company, Max Financial Services Limited (MFS) will focus solely on managing the Group’s flagship life insurance business, through its 72% shareholding in Max Life, making it the first Indian listed company exclusively focused on life insurance.
The second holding company, which retains the name Max India Limited, will manage investments in the high potential Health and Allied businesses – Max Healthcare, Max Bupa and Antara Senior Living. The demerger will provide these businesses, which are currently in their growth and development phases, closer attention to fulfil their tremendous potential.
The third holding company, Max Ventures & Industries Limited (MVIL) will manage the investment in the manufacturing subsidiary, Max Speciality Films, which is an innovation leader in the Speciality Packaging Films business. It will also evaluate new ideas in the ‘wider world of business’, including but not limited to sectors such as real estate, education and technology.
Explaining the transformative potential of the demerger, Mr. Analjit Singh, Founder & Chairman Emeritus, Max Group, said, “The Group operates diverse businesses, each of which has considerable value and growth potential. The demerger will provide investors a choice to continue to be associated with all these businesses, or in the set of businesses that suit their respective investment objectives.”
Mr. Rahul Khosla, President, Max Group, also emphasized the benefits of the demerger, saying, “The demerger will lead to a more specific value discovery for each vertical. Moreover, it will provide sharper management focus to each underlying business. Due to their inherent features and priorities, each of the three holding companies will be optimally positioned to guide their operating businesses on their respective growth journeys.”
Showcasing this restructuring will be a rejuvenated Max logo which has been redesigned to become smarter and more contemporary while retaining the essence of its existing components that project its representation of the businesses of life. All operating companies will incorporate this new Max logo, including Max Bupa whose redesigned logo will now bear a more representative reflection of its Max Group lineage.
The demerger, which was announced in Jan 2015 was concluded after consent and approvals from the High Court of Punjab & Haryana, the Insurance Regulatory and Development Authority of India (IRDAI), the Securities and Exchange Board of India (SEBI) and the Competition Commission of India (CCI).
The demerger represents the onset of the third horizon for Max Group since its inception. In the first horizon, the Group developed as a diversified pharma, telecom services, electronics and manufacturing conglomerate and established partnerships with global leaders in their respective domains.
The second horizon, beginning with the year 2000 saw the Max Group attain national prominence and set industry standards in its ‘businesses of life’. The Group has transformed to now become a $2 billion, multi-business corporation known for its entrepreneurial skills, service excellence, superior performance, and high quality governance.
Post restructuring, the erstwhile Max India’s existing shareholders will retain one equity share of Rs 2/- in Max Financial Services Limited. They will additionally get one equity share of Rs. 2/- each of the new company Max India Limited for every one equity share held in Max Financial Services and one equity share of Rs. 10/- each of Max Ventures and Industries Limited for every 5 equity shares of Rs. 2/- each held in Max Financial Services. The company has applied for approval from the Foreign Investment Promotion Board (FIPB) to enable issuance of the aforesaid new shares.
Even as all these changes will be implemented, the Group’s core values of Sevabhav, Excellence and Credibility will remain unchanged as it fulfills its commitments to its stakeholders and society.
About the Max Group
The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Healthcare & Allied businesses and packaging sectors. In FY ‘15, the Group recorded a consolidated turnover of Rs 14,877 Cr. It has a total customer base of over 7.5 million, nearly 300 offices spread across India and people strength of around 17,000 as on 31st March 2015.The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, IFC Washington, Temasek, Fidelity and New York Life.
The Max Group comprises three holding companies, namely:
Max Financial Services, the holding company for Max Life, India’s largest non-bank-owned, private life insurance company. Max Financial Services owns and actively manages a 72.1 per cent stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan- headquartered global leader in life insurance.
Max India, the holding company for Max Healthcare, Max Bupa Health Insurance and Antara Senior Living, is focused on health and allied businesses. Max Healthcare and Max Bupa Health Insurance are joint ventures with global leaders, Life Healthcare (South Africa) and Bupa Finance Plc. (UK), respectively. These businesses have well-entrenched positions in their respective categories, and are recognized for their outstanding service standards. The Company owns and actively manages a 46.4% per cent stake in Max Healthcare, a 76% stake in Max Bupa Health Insurance and a 100% stake in Antara Senior Living.
Max Ventures and Industries, the holding company for Max Speciality Films, an innovation leader in the Speciality Packaging Films business. In addition to manufacturing, the Company also serves as the Group’s entrepreneurial arm to explore the ‘wider world of business’, especially taking cues from the economic and commercial reforms agenda of the present Government, including ‘Make in India’, ‘Skill India’, ‘Digital India’, among others.
The two additional holding companies will be shortly listed on both the Bombay Stock Exchange as well as the National Stock Exchange.

Annexure:

  • Max Group companies architecture
  • Lists of:
    • Key position holders of all Holding and key Operating Companies
    • Board Members of all Holding and key Operating Companies

For information please contact:
Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Jayant Singh
[email protected]
+91 9999162213

– Max India Board to announce effective date for demerger of company into 3 separate listed entities in January 2016
– Max Financial Services expected to trade ex-demerger in January 2016, and the other resulting companies in February 2016
24th Dec 2015, New Delhi

The Hon’ble High Court of Punjab and Haryana vide its order dated 14th December 2015 approved Max India’s Composite Scheme of Arrangement for the demerger of the company. The shareholders of Max India have already given their consent on July 4, 2015, with over 99.9% voting in favor of the demerger, which will unlock value and provide undiluted access to the company’s businesses. In addition, the Insurance Regulatory and Development Authority of India (IRDAI), the Securities and Exchange Board of India (SEBI) and the Competition Commission of India (CCI) have already approved the demerger of Max India, into three separate listed entities. The court is expected to issue the detailed certified order shortly.

Upon receipt of the detailed certified order, the Company will file the same with the Registrar of Companies (RoC) for achieving ‘Effective Date’ of the demerger – the day the 3 legal entities will stand demerged.

On the Effective Date, the existing company, Max India will be renamed as Max Financial Services Limited. In addition, as per the sanctioned scheme, Resulting Company 1 i.e., Taurus Ventures Limited will be renamed as Max India Limited and Resulting Company 2, i.e., Capricorn Ventures Limited will be renamed as Max Ventures and Industries Limited. The demerged Max Financial Services Limited’s stock will start trading on the BSE as well as the NSE in a week from the Effective Date and the two additional companies are anticipated to list in about 45 days from the Effective Date.

Explaining the rationale for the restructuring, Mr. Rahul Khosla, Managing Director, Max India said, “The strategic restructuring and the underlying strength and potential of each business make them well positioned to deliver stellar performance going forward. One of the main benefits of the restructuring is to provide choice for investors to participate specifically in the growth of different sectors/industries. The restructuring and separate listings will also lead to a more accurate value discovery of each vertical. The market has responded extremely favourably in the past few months since we announced the restructuring in January and we hope the investors’ trust in us will only continue to grow from here.”

Commenting on the next steps in the restructuring exercise, Deputy Managing Director Mr. Mohit Talwar said, “The Court order has been a critical penultimate step towards the conclusion of the much awaited restructuring. We and our investors are now looking forward to the demerger and the resultant listing of the 3 demerged entities. We are seeing a significant amount of investor interest and shareholder confidence in all the listing entities.”

Post demerger, the three holding companies will be as follows:

a) Max Financial Services Limited will focus solely on, and manage the Group’s flagship life insurance activity, through its subsidiary Max Life Insurance, in which it holds 72% share, making it the first Indian listed company exclusively focused on life insurance.

b) The second listed company, Max India Limited will manage investments in the high potential Healthcare and Allied businesses. It will have three subsidiaries – Max Healthcare, Max Bupa and Antara Senior Living. The demerger will provide these businesses, which are currently in their growth and development phase, sharpened focus to fulfill their tremendous growth and value potential.

c) The third listed company, Max Ventures and Industries Limited (MVIL), will manage investment in the Group’s manufacturing subsidiary, Max Speciality Films – an innovation leader in the Speciality Packaging Films business. In addition, MVIL will explore fresh ideas for new ventures in the ‘wider world of business’.

Post restructuring, Max India’s existing shareholders will retain one equity share of Rs 2/- in Max Financial Services Limited. They will additionally get one equity share of Rs. 2/- each of the new company Max India Limited for every one equity share held in Max Financial Services and one equity share of Rs. 10/- each of Max Ventures and Industries Limited for every 5 equity shares of Rs. 2/- each held in Max Financial Services. The company has applied for approval from the Foreign Investment Promotion Board (FIPB) to enable issuance of the aforesaid new shares.

About Max Group

The Max Group is a leading Indian multi-business corporate with a commanding presence in the Life Insurance, Healthcare and Health Insurance sectors. In the financial year 2015, the Group recorded a consolidated turnover of Rs 14,877 Cr. It has a total customer base of over 7.5 million, nearly 300 offices spread across India and people strength of around 17,000 as on 31st March 2015. Max India Limited is a widely held company, listed on the BSE and the NSE. Its founder sponsor Analjit Singh holds 40.5% stake in the company. Other shareholders include some of the world’s best Institutional Investors such as Goldman Sachs, Temasek, IFC (Washington), Fidelity and New York Life.

For information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

– Operating EV grows at annualised rate of 15%
– Structural new business margin at 20%
26th November 2015, New Delhi

Max India Ltd. today announced the Embedded Value (EV) for its life insurance business, Max Life, at Rs. 5,363 Cr. as at 30th September 2015, based on Market Consistent methodology. The annualised growth in Operating EV for H1 FY2016 is an impressive 14.8% before accounting for capital movements. The Return on EV (RoEV) is 13.8% over the previously declared EV of Rs. 5,232 Cr. as at 31st March 2015. The Value of New Business (VNB) written during H1 FY2016 is Rs 163 Cr with the new business margin at a strong 20.2%, before the cost overrun, and 17.0%, after the cost overrun. The growth is supported by strong fundamentals both on the existing business as well as a continued focus on new profitable business.

EV and VNB are important metrics for the valuation of a life insurance business as the company is generally valued at a multiple to its EV. For instance, Mitsui Sumitomo Insurance’s investment in Max Life Insurance was at an implied EV multiple of around 3 times.

The EV of a life insurance company comprises two key elements — a) Net Asset Value or the Net Worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and b) the Present Value of the company’s future expected profits from its existing business portfolio as at the date of valuation.

Max Life had transitioned its EV calculation to a Market Consistent methodology from the earlier traditional approach (Traditional Embedded Value – TEV) in FY2015. This follows market practice in developed markets, where life insurers have moved to adopt market consistent methodologies.

A market consistent methodology approach better reflects the embedded value of an insurance company by explicitly allowing for insurance and economic risks rather than using an implicit overall allowance for risks through a Risk Discount Rate (RDR) in the traditional approach. In addition, the market-consistent approach is more objective where asset and liability cash flows are valued using assumptions consistent with those applied to similar cash flows in the capital markets.

About Max Group

Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Healthcare and Health Insurance sectors. In the financial year 2015, the Group recorded a consolidated turnover of Rs 14,877 Cr. It has a total customer base of over 7.5 million, nearly 300 offices spread across India and people strength of around 17,000 as on 31st March 2015. Max India Limited is a widely held company, listed on the BSE and the NSE. Its founder sponsor Analjit Singh holds 40.5% stake in the company. Other shareholders include some of the world’s best Institutional Investors such as Goldman Sachs, Temasek, IFC (Washington), Fidelity and New York Life.

About Max Life

Max Life Insurance Company Ltd. (MLIC) is a joint venture between Max India Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Mitsui Sumitomo Insurance is a part of MS&AD Insurance Group, which is amongst the leading general insurers in the world. Max Life Insurance, one of India’s leading life insurers, offers comprehensive life insurance and retirement solutions for long-term savings and protection.

A financially strong and stable company with focus on quality of advice, sound investment expertise and service excellence, Max Life Insurance has set in place value-driven culture and corporate governance through its superior human capital. The Company has a countrywide diversified distribution model, including the country’s leading agent advisors, exclusive corporate agency arrangement with Axis Bank and several other partners.

Max India will own 51% and Bupa will own 49% in Max Bupa post requisite regulatory approvals
23rd November, 2015, New Delhi

Max Bupa Health Insurance (Max Bupa) today announced that its foreign parent Bupa has executed agreements to acquire an additional 23% stake in Max Bupa, one of India’s leading standalone health insurers. Bupa will pay around Rs 191 cr to Max India in an all cash transaction, to increase its stake in Max Bupa from 26% to 49%. Bupa was the first foreign insurer to announce its intent to increase its stake to 49% in its Indian health insurance subsidiary after the Government relaxed FDI participation rules for insurance companies.

Since that announcement in January 2015, Bupa and Max India have been working to align their JV agreements with the Insurance Laws (Amendment) Bill 2015 for Indian-owned and controlled businesses. The new agreements will come into force after the requisite regulatory clearances have been secured from the Foreign Investment Promotion Board (FIPB) and the Insurance Regulatory and Development Authority of India (IRDAI).

Launched in 2010, Max Bupa is already the 7th largest private health insurer in India. With a base of more than two million customers across India, it continues to be amongst the fastest growing stand-alone health insurers. Max Bupa has focused on building a retail customer and product portfolio via multiple sales channels including agency, bancassurance, telesales and online.

Its local parent Max India is one of India’s leading multi-business corporates and currently owns 74% of Max Bupa. Its foreign parent Bupa is a UK-headquartered global healthcare group, which holds 26% stake in the company.

Rahul Khosla, Managing Director, Max India Limited, welcomed the development. “Bupa’s stake increase is a clear affirmation of the huge growth opportunity for health insurance in India. The cash received from the transaction will support growth aspirations of the Max Group as well as for Max Bupa. I am confident that this renewed vote of confidence by Bupa, coupled with the recent strategic reorientation of the company will strengthen its position as an innovative leader in its field while setting new benchmarks in customer experience.”

Speaking at the occasion, David Fletcher, Managing Director of International Development Markets at Bupa said: “We see enormous opportunity in India to build on the great foundations of the last few years and use our global expertise to take the business to the next level. We are committed to growing an insurance business that not only provides the best quality healthcare funding but that is at the forefront of helping Indian people to live healthier lives.”

Max India has successfully managed several joint venture partnerships in its diverse businesses. Apart from Bupa, it also has partnerships with Japan’s Mitsui Sumitomo for its Life Insurance business and South Africa-based Life Healthcare for its healthcare business.

About Max Bupa Health Insurance

Max Bupa is a, 74:26, joint venture between Max India Limited, a multi-business corporate with expertise in life insurance and health care and Bupa, a leading international healthcare provider with 65 years of healthcare knowledge. Max Bupa brings together a combination of Bupa’s health insurance and customer service expertise with Max India’s understanding and experience of the Indian health and insurance sectors. Max Bupa offers quality health insurance services through a dedicated team of over 1400 people and its network of 26 offices across 16 cities – Delhi, Mumbai, Hyderabad, Chennai, Bangalore, Pune, Ludhiana, Chandigarh, Jaipur, Surat, Kochi, Kolkata, Patna, Goa, Jodhpur and Ludhiana. Max Bupa offers individual and family oriented health insurance policies for Indians across all age groups.

Max Bupa has a direct working relationship with a network of over 3500 top quality hospitals and healthcare providers, with plans to extend its network of hospitals to other parts of the country. Max Bupa services customers directly without third party involvement. For more details about the company and a list of all our network hospitals please visit www.maxbupa.com.

About Bupa

As a leading global health and care company, Bupa offers health insurance, medical subscription and other health and care funding products. Bupa runs care homes, retirement and care villages, primary care, diagnosic and wellness centres, hospitals and dental clinics. Bupa also provides workplace health services, home healthcare, health assessments and long-term condition management services.

Bupa has 29 million customers in more than 190 countries. With no shareholders, it invests its profits to provide more and better healthcare and fulfill its purpose: longer, healthier, happier lives.

Bupa employs almost 80,000 people, principally in the UK, Australia, Spain, Poland, New Zealand and Chile, as well as Saudi Arabia, Hong Kong, India, Thailand and the USA.

For more information, please visit: www.bupa.com

About Max India Group

Max India Group is a leading Indian multi-business corporate with a commanding presence in the Life Insurance, Healthcare and Health Insurance sectors. In the financial year 2015, the Group recorded a consolidated turnover of Rs 14,877 Cr. It has a total customer base of over 7.5 million, nearly 300 offices spread across India and people strength of around 17,000 as on 31st March 2015. Max India Limited is a widely held company, listed on the BSE and the NSE. Its founder sponsor Analjit Singh holds 40.5% stake in the company. Other shareholders include some of the worlds best Institutional Investors such as Goldman Sachs, Temasek, IFC (Washington), Fidelity and New York Life.

Max Healthcare partners Smart Health City to operate and manage South Delhi based Saket City Hospital

28th Oct 2015 New Delhi

Max Healthcare (MHC) today announced a partnership with Smart Group wherein MHC would acquire 51% stake in Saket City Hospital Pvt. Ltd., from Smart Health City Pte Ltd, the Singapore based BK Modi Group company which manages and operates the Delhi based Saket City Hospital (SCH). The transaction is subject to confirmatory diligence, requisite regulatory approvals and other customary conditions.

Located in the heart of South Delhi’s Saket area, SCH, which started operations in 2013, has 230 operational beds and is currently expanding to 300 beds. Max Healthcare plans to further expand this facility by ~900 additional beds, thereby expanding SCH’s capacity to 1200 beds. This addition represents a more than 50% increase compared to Max Healthcare’s current capacity and will significantly enhance access to quality healthcare.

Combined with Max Healthcare’s existing and contiguously located flagship facility (Max Super Specialty Hospital – Saket), Max Healthcare will have a footprint of more than 2000 beds in Saket – making it one of the largest single-location healthcare facilities in India.

MHC’s flagship quaternary & tertiary care hospital Max Super Specialty Hospital (MSSH) Saket is already one of North India’s premier destinations for tertiary & quaternary care including Centers of Excellence for several tertiary specialties. It is also home to a large number of top clinicians of national eminence and has a strong flow of both domestic and international patients. This development is expected to yield tremendous benefits of scale, synergy and quality across clinical, patient safety, customer service, management and financial aspects in tandem with the Max Healthcare network.

For Smart Health City, the partnership will progress Dr. B K Modi’s vision of creating a world-class Medical Office Building (MOB) in addition to SCH. The complementary medical services by MOB will include day care procedures, diagnostics, assisted living, rehabilitation centre, medical and clinical research etc.

The integrated healthcare facility comprising MSSH-Saket, SCH and MOB will collectively result in the development of a world class Medicity in the heart of India’s capital.

SCH will be rebranded as Max Smart Super Speciality Hospital to reflect the shared vision of the two partners.

Commenting on the partnership, Rahul Khosla, MD, Max India and Chairman, Max Healthcare, said, “The ability to create a 2,000 bed world class integrated Medicity, is a life changing opportunity for Max Healthcare and is in line with the company’s vision to be a best in class healthcare services provider. Max Healthcare is confident that this acquisition will provide significant opportunities through the realisation of a clear vision that includes setting up a world class centre dedicated to Oncology, development of high end Neurosciences capabilities, expansion of tertiary and quaternary specialities, installation of facilities to cater to transplants, deployment of high end technology solutions such as robotics to improve care and safety as well as to address the growing burden of lifestyle related, especially non communicable diseases.”

Talking about the partnership, Dr B K Modi, Founder & Chairman, Smart Global Group, said, “The partnership between Smart Health City and Max Healthcare will be transformational for healthcare delivery in North India. Max’s reputation as a premier healthcare provider and the expertise of their international JV partner, Life Healthcare, South Africa, will act as a catalyst for Smart Health City’s aspirations of creating a world class healthcare destination. I am now confident of providing India a health facility we will all be proud of.”

Reflecting on the development, Andre Meyer, CEO, Life Healthcare, said, “Max Healthcare is a critical part of our international portfolio. This Brownfield expansion will accelerate value creation. MHC is our first large scale healthcare platform outside Southern Africa and its continued success has strengthened our commitment to India in general and Max Healthcare in particular.”

Rajit Mehta, MD and CEO, Max Healthcare said, “We believe that we will be able to integrate SCH with our hospital network quickly to optimize clinical and service standards, realize cost efficiencies and attract more top clinicians to an already respectable talent pool.”

Dr Ashok V Chordiya, Vice Chairman, Saket City Hospital, said, “’This partnership will pave the way forward to superior care in medical as well as other complimentary and ancillary services providing comprehensive healthcare.”

Ernst & Young acted as the Advisor to the transaction.

About Max Healthcare
Max Healthcare (MHC) is an equal joint venture with Life Healthcare, South Africa, with both partners holding 45.94% equity stake each in MHC. It is the country’s leading comprehensive provider of standardized, seamless and international-class healthcare services. MHC is committed to the highest standards of medical and service excellence, patient care, scientific and medical education.

Max Healthcare has 13 facilities in North India, offering services in over 30 medical disciplines. Of this, 10 facilities are located in Delhi & NCR and the others in Mohali, Bathinda and Dehradun.

Max Healthcare has a base of over 2,500 doctors, 10,000 employees, and over 2.7 million patients from over 80 countries, across its network of 13 hospitals.

About Smart Health City

Smart Health City Pte Ltd is a Singapore based company and is the holding company for Saket City Hospital and for providing allied medical services. Inspired to create a global standard for healthcare, Smart Health City endeavors to create holistic healthcare destinations that will pioneer medical innovation and patient care experience.

For more information please contact:

Nitin Thakur
[email protected]
+91 9873347428

Beedisha Chakrabarti
[email protected]
+91 9899003192

Sonali Bagchi
[email protected]
+91 9873242084

Max India’s Corporate Restructuring Plan Receives Formal Shareholder Approval

– Max India shareholders support the demerger with an overwhelming majority of 99.99%
– Significant milestone towards completing the three-way demerger
6th August 2015, New Delhi

The Hon’ble High Court of Punjab and Haryana has issued an order, taking on record the shareholders’ approval of Max India’s Composite Scheme of Arrangement for the demerger of the company and granted liberty to file a second motion petition. The Court-convened meeting of the equity shareholders of Max India was held on 4th July, 2015, in which 99.99% of the shareholders voted in favour of the Scheme.

The order allows the Company to move the second petition before the High Court. The Court will seek comments from the relevant regulatory authorities for the final approval of the demerger.

In addition, the company has applied to the Insurance Regulatory and Development Authority (IRDA) and the Foreign Investment Promotion Board (FIPB) for approval. The Company is hopeful of receiving the final court approval order by the end of September 2015.

Max India has already received approvals for its proposed corporate restructuring from the Securities and Exchange Board of India (SEBI), the two stock exchanges where it is listed — the Bombay Stock Exchange & the National Stock Exchange — as well as from the Competition Commission of India (CCI).

Besides the entity that is already listed, the two additional companies resulting from the Scheme will immediately file for listing of the shares with the stock exchanges following the final approval.

The proposed restructuring is a significant strategic event and is being undertaken to provide investors specific and undiluted access to Max India’s diverse lines of businesses, provide sharper focus to each underlying business and to unlock shareholder value.

Three holding companies will be listed upon completion of the demerger.

a) The existing company, Max India Limited, will be renamed ‘Max Financial Services Limited’ (MFS) and will focus solely on the Group’s flagship life insurance activity, through its subsidiary Max Life Insurance, in which it will hold 72% shareholding, making it the first Indian listed company exclusively focused on life insurance.

b) The second listed company will be named Max India Limited, and will continue to manage investments in the high potential sector of Healthcare and allied businesses. It will have three subsidiaries – Max Healthcare, Max Bupa and Antara Senior Living. The demerger will provide these businesses, which are currently in their growth and development phase, sharpened focus to fulfil their tremendous growth and value potential.

c) The third listed company will be named Max Ventures and Industries Limited (MVIL) and will house the Group’s manufacturing subsidiary, Max Speciality Films – an innovation leader in the Speciality Packaging Films business. In addition, MVIL will also leverage the platform provided by the Prime Minister’s ‘Make in India’ initiative and will explore fresh ideas for new ventures in the ‘wider world of business’.

Once the restructuring scheme is effective, after due regulatory approvals, Max India’s existing shareholders will retain one equity share of Rs 2/- in Max Financial Services Limited. They will additionally get one equity share of Rs. 2/- each of the new company Max India Limited for every one equity share held in Max Financial Services and one equity share of Rs. 10/- each of Max Ventures and Industries Limited for every 5 equity shares held in Max Financial Services.

About Max India

Max India Group is a leading Indian multi-business corporate with a commanding presence in the Life Insurance, Healthcare and Health Insurance sectors. In the financial year 2015, the Group recorded a consolidated turnover of Rs 14,877 Cr. It has a total customer base of over 7.5 million, nearly 300 offices spread across India and people strength of around 17,000 as on 31st March 2015. Max India Limited is a widely held company, listed on the BSE and the NSE. Its founder sponsor Analjit Singh holds 40.5% stake in the company. Other shareholders include some of the world’s best Institutional Investors such as Goldman Sachs, Temasek, IFC (Washington), Fidelity and New York Life.

For information please contact:

Nitin Thakur

[email protected]

+91 9873347428

Beedisha Chakrabarti

[email protected]

+91 9899003192

Anisha Rakyan

[email protected]

+91 9811024077

Sonali Bagchi

[email protected]

+91 9873242084

Max India Foundation salutes Breast Cancer survivors in a gala event ‘Celebrate Me’

~Held in Delhi on 22nd March 2015 as a culmination to cancer screening and awareness camps~

24th March, 2015, Delhi: Continuing its commitment and fight against Breast Cancer, Max India Foundation (MIF) culminated its month long breast cancer screening and awareness campaign with “Celebrate Me” event in Delhi. The event was organized to honor women who have survived their battle against Breast Cancer and emerged as ‘champions’ and to share their stories of tremendous determination and grit that can inspire one and many. The champions, attired in Ritu Kumar fashion wear, walked the ramp alongside doctors who helped them through the journey. Two poignant short stories, outlining the journeys of champions, as a first person account, were also showcased at the event.

The gala event featured breast cancer survivors on the ramp with hair and makeup done by Dr Blossom Kochar of Aroma Magic. The evening showcased some women-centric performances by Rekha Surya, a renowned Hindustani classical music singer and disciple of Begum Akhtar; and urban folk band Folka Dots. The famous Bharatnatyam dancer Rama Vaidya Nathan, accompanied by her daughter, choreographed and performed a beautiful dance depicting the ups and downs of life – “What is Life”. The evening was graced by Shweta Bachhan Nanda walking the ramp as the showstopper to endorse support to the survivors. Sharing her thoughts with the audience, she said, “Any kind of cancer brings a stigma with it. One must remember that cancer is a tough disease but those who fight it are tougher. Well-being is as much a part of the mind and spirit as the body. We shouldn’t just celebrate those suffering from cancer but the care-givers who are constantly there for care and support through every milestone in the journey of people championing cancer. I congratulate the women present here this evening for their indomitable spirits’. They are really heroes. With this event, the survivors or “champions “ have been infused with a great sense of confidence and self-esteem. They have bonded as a group and feel connected and supported.’

Mr Analjit Singh, Chairman Max India and Managing Trustee of the Foundation was personally present at the event along with Mr Rahul Khosla (Managing Director, Max India) and Mohit Talwar (Deputy Managing Director, Max India). Other seniors like Mr Rajesh Sud (Managing Director, Max Life Insurance) and Mr Rajit Mehta (Deputy Managing Director, Max Healthcare) were also present. Speaking at the event, Mr. Singh shared a profound narration of a young surgeon who succumbed to cancer. He said, “Persistence is the true spirit of existence. Today, as we gather here to commemorate exceptional individuals, we pay tribute to them not simply because they have conquered a malady but because they have left lessons with us on how to battle and persist against various odds that life throws at us. We all have to work mindfully to contribute to society and develop everything around us to protect ourselves from how life has become now. I hope we all spread consciousness on how to live healthy lives.”

Ms. Mohini Daljeet Singh, Chief Executive of Max India Foundation, talking about strong commitment towards the cause said, “Cancer is a leading cause of death globally. Many of these deaths can be prevented by early detection, treatment and good palliative care. Max India Foundation takes immense satisfaction in persistently providing patients across the country with support services for diagnosis and cure. We recently received funding from Australian High Commission under their Direct Aid Programme for cancer awareness activities and this support enthuses us all the more to increase the outreach of our local campaigns to educate people in preventive health measures. ‘Celebrate me’, is aimed at emboldening and equipping cancer survivors by bringing to light their encouraging experiences on a multi-stakeholder platform. It is a simple yet powerful initiative to strengthen and promote benefits arising out of regular health check-ups specifically pertaining to breast cancer.”

Mr. Gregory Harvey, a representative from the Australian High Commission at the event said, ‘The work that the Max India Foundation, to provide mobile screening camps in Delhi and Punjab, is doing is extremely significant. One of the key aspects of curing cancer is improving early and accurate detection. It increases survivor rates and also ameliorates health outcomes and quality of life of patients. We look forward to continuing and maintaining our relationship with the Foundation to continue addressing such crucial issues.’

MIF, the CSR arm of Max group, organized a month long Cancer screening and awareness campaign in Delhi NCR and across all 8 blocks of Bathinda, Punjab. The campaign, which commenced on 23rd February, 2015, reached out to over 500 women through 13 camps in the 2 states. Free-of-cost screening for detection of cancers of breast, cervix and oral cavity was provided at these camps. Awareness on cancer prevention and cure were integrated with these camps on a large scale. The various IEC activities to generate awareness among the communities included street plays, talks by expert doctors, screening of movie, pamphlets etc.

About Max India Foundation

Max India Foundation (MIF), founded in 2008, is the social service arm of Max India Limited. The primary areas of work are curative and preventive healthcare, health awareness for underprivileged population; and initiatives on a health oriented environment. The foundation organizes immunization camps for children and multispecialty health camps for all age groups; operates permanent health centers; supports medical and surgical treatments at Max group of hospitals and artificial limbs and calipers for the disabled; caters to nutritional needs of children; creates health awareness; and carries out disaster relief work. Guided by its vision of ‘Caring for life’, the foundation has benefitted over 1.2 million people from the underserved communities in 22 states across the country in partnership with more than 400 NGOs.

Max India Foundation has been awarded the Golden Peacock Global CSR Award in 2011 and Golden Peacock Award for CSR 2012, The BSE 6TH Social And Corporate Governance Awards – 2010, 5th and 7th INDY‟S Stars of the Industry Awards 2011 for Best CSR, and Blue Dart Award for CSR on World CSR Day in 2012 and 2013, for the significant impact the Foundation has made to the lives of the needy in the last five years.

For further information, please contact:

Text100 – Anubhuti Sharma, 9654367013, [email protected]

Text100 – Garima Sharma, 9899175275, [email protected]

Max Healthcare to acquire 76% stake in NCR based Pushpanjali Crosslay Hospital for Rs 287 Cr.

Max Healthcare (MHC) today announced that it has executed definitive agreements to acquire a controlling stake of 76% in NCR based Pushpanjali Crosslay Hospital (PCH) through a combination of fresh investment and acquisition of shares from existing promoters for the aggregate sum of Rs 287 Cr. Situated just 4 kms from Max Super Speciality Hospital in Patparganj, the 340-bedded Pushpanjali Crosslay is at a prime location along the East Delhi-Ghaziabad-Noida corridor. The hospital which has the capacity to expand up to 540 beds is NABH and NABL accredited and has been operational since 2010.

This move is in line with Max Healthcare’s ambitious growth strategy and follows its impressive financial performance and turn around to profitability. The new hospital, which will be rebranded under the Max Hospital umbrella, is expected to benefit immensely from clinical, management and financial synergies with the Max Healthcare network in general and Max Super Speciality Hospital, Patparganj in particular.

MHC is confident that this acquisition will provide significant expansion to the top and bottom line through sharing of resources, cost efficiencies, optimization of occupancy, and focusing on high growth specialities such as Oncology, Neuro Sciences, Renal Sciences including Kidney Transplant Program, Orthopedics and Cardiac Sciences.

Max Super Speciality Hospital, Patparganj, which is in close proximity to PCH, has already established a strong following and brand presence in the East Delhi & Western UP market and operates consistently at benchmark levels of occupancy. This acquisition, along with the existing hospitals in Patparganj, Noida and Greater Noida, will provide Max Healthcare a formidable presence in the East Delhi and Western UP region, which has a limited number of tertiary care hospitals catering to a population of more than 12.7 million.

Commenting on the acquisition, Rahul Khosla, Chairman, Max Healthcare and MD, Max India, said, “This acquisition comes at a fortuitous time for us when Max Healthcare has turned profitable and is poised for growth. Pushpanjali Crosslay is one of the few hospitals in NCR region which match Max Healthcare’s infrastructure and scale standards. Its 340 operational beds will allow immediate revenue and profit accretion to Max Healthcare. In addition, the reputation for excellence in medical services created by Max Healthcare, and particularly by our tertiary care hospital in Patparganj, will be hugely beneficial in attracting patients and top clinicians to our new hospital.”

Rajit Mehta, MD and CEO, Max Healthcare said, “Pushpanjali Crosslay is a welcome addition to our hospital network. We believe that we will be able to integrate it with our other hospitals fairly quickly to optimize clinical and service standards, realize cost efficiencies and attract more top clinicians to its already respectable clinical talent pool. Our patients should be confident of benefiting from the high levels of care and treatment that they have come to expect from any Max Hospital.”
PCH was founded by prominent Delhi clinician Dr Vinay Aggarwal along with a cooperative of around 250 doctors and 450 nursing staff. The property has 11 operation theatres, 4 labour rooms, 1 cath lab and is spread across 3.46 acres of freehold land, with a built up area of 3.84 lakh sq ft. With topof-the-line infrastructure and an opportunity to optimize the hospital’s operating model to drive efficiencies, the hospital presents MHC with immense scope for expansion and for transforming the hospital to a super speciality institution of choice in the near future. PCH had reported revenue of Rs 143 Cr at an EBIDTA margin of 14% in FY2014. Both these parameters underscore the potential for growth and upside by deploying Max Healthcare’s assets and expertise. Ernst & Young LLP acted as exclusive lead advisors on the transaction to PCH, while MHC’s side was led by Max Group and Life Healthcare’s in-house teams.

MHC plans to fund this transaction through a combination of debt and proceeds received from the recent stake increase by Life Healthcare & IFC.
Max Healthcare is on a steady path of growth, driven by significant increase in traction in its existing hospitals, and the ability to effectively harness growth from its new hospitals in Dehradun, Shalimar Bagh, Bathinda, Mohali and Greater Noida.

About Max Healthcare
Max Healthcare (MHC) is a joint venture with Life Healthcare, South Africa, and is the Country’s leading comprehensive provider of standardized, seamless and international-class healthcare services. It is committed to the highest standards of medical and service excellence, patient care, scientific and medical education.
Max Healthcare has 12 facilities in North India, offering services in over 30 medical disciplines. Of this, 9 facilities are located in Delhi & NCR and the others in Mohali, Bathinda and Dehradun. The Max network includes state-of-the-art tertiary care hospitals in Saket, Patparganj, Shalimar Bagh, Mohali, Bathinda and Dehradun, secondary care hospitals at Gurgaon, Pitampura, Noida & Greater Noida and an out-patient facility and speciality centre at Panchsheel Park. The Super Speciality Hospitals in Mohali and Bathinda are under PPP arrangement with the Government of Punjab.

Max Healthcare has a base of over 2,200 doctors, 9300 employees, and over 2.5 million patients from over 80 countries, across its network of 12 hospitals.

About Max India
The Max India Group is a leading Indian multi-business corporate with a commanding presence in the Life Insurance, Healthcare and Health insurance sectors. In the financial year 2015, the Group recorded consolidated revenue of Rs. 14,877 crore. It has a total customer base of over 8 million, nearly 300 offices spread across India and employee strength of over 70,000 persons as on 31st March 2015. Max India Limited is a widely held company, listed on the BSE and the NSE. Its founder sponsor Analjit Singh holds 40.5% stake in the company. Other shareholders include some of world’s best Institutional Investors such as Goldman Sachs, Temasek, IFC (Washington), Fidelity, New York Life.

About Life Healthcare
Life Healthcare is the second largest private hospital operators in South Africa. It currently owns and operates 63 facilities with 8322 beds in a comprehensive geographic spread over seven South African provinces and Botswana. It is also a leading provider of acute rehabilitation and mental health services in the country.

For information please contact:
Nitin Thakur [email protected] +91 9873347428

Beedisha Chakrabarti [email protected] +91 9899003192

Anisha Rakyan [email protected] +91 9811024077

Sonali Bagchi [email protected] +91 9873242084

Max India announces the Embedded Value (EV) for its life insurance business as at 31st March 2015

– EV based market consistent methodology stands at Rs. 5,232 Cr., implying total and operating returns of 28.1% and 22.3% respectively

Max India Ltd. today announced the Embedded Value (EV) for its life insurance business, Max Life, at Rs. 5,232 Cr. as at 31st March 2015, based on Market Consistent methodology. The Return on EV for FY2015 is an impressive 28.1% while the Operating Return on EV is 22.3%. The Value of New Business (VNB) written during FY2015 is Rs 460 Cr. with the new business margin at a healthy, 23.4%. The growth is supported by strong fundamentals both on the existing business as well as a continued focus on new profitable business.

EV and VNB are important metrics for the valuation of a life insurance business as the company is generally valued at a multiple to its EV. For instance, Mitsui Sumitomo Insurance’s investment in Max Life Insurance was at an implied EV multiple of around 3 times.

Embedded Value (EV) of a life insurance company comprises two key elements — a) Net Asset Value or the Net Worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and b) the Present Value of the company’s future expected profits from its existing business portfolio as at the date of valuation.

Max Life transitioned its EV calculation to a Market Consistent methodology from the earlier traditional approach (Traditional Embedded Value – TEV). This follows market practice in developed markets, where life insurers have moved to adopt market consistent methodologies.

A market consistent methodology approach better reflects the embedded value of an insurance company by explicitly allowing for insurance and economic risks rather than using an implicit overall allowance for risks through a Risk Discount Rate (RDR) in the traditional approach. In addition, the market-consistent approach is more objective where asset and liability cash flows are valued using assumptions consistent with those applied to similar cash flows in the capital markets. The decision to adopt the market consistent methodology was approved by the Max Life Board on 21st May 2015. The EV for FY2014, as per the TEV methodology was Rs 3953 Cr.

Max Life has been on a steady growth trajectory over the past 4 years and continued to register exceptional performance in the previous financial year as well. The company reported 12% premium growth and Rs 477 Cr shareholder profits for FY2015. Max Life maintained its position as the 4th largest private player in the life insurance industry (individual business), and the largest non-bank private life insurance company. The company wiped out all its accumulated losses during FY2015.

Max India Ltd. also announced its results today with its consolidated revenue for FY15 at Rs 14,877 Cr, growing 27% and consolidated PAT at Rs 365 Cr, growing 75%.

About Max India
Max India Group is a leading Indian multi-business corporate with a commanding presence in the Life Insurance, Healthcare and Health Insurance sectors. In the financial year 2015, the Group recorded a consolidated turnover of Rs 14,877 Cr. It has a total customer base of over 7.5 million, nearly 300 offices spread across India and people strength of around 17,000 as on 31st March 2015. Max India Limited is a widely held company, listed on the BSE and the NSE. Its founder sponsor Analjit Singh holds 40.5% stake in the company. Other shareholders include some of the world’s best Institutional Investors such as Goldman Sachs, Temasek, IFC (Washington), Fidelity and New York Life.

About Max Life
Max Life Insurance Company Ltd. (MLIC) is a joint venture between Max India Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Mitsui Sumitomo Insurance is a part of MS&AD Insurance Group, which is amongst the leading general insurers in the world. Max Life Insurance, one of India’s leading life insurers, offers comprehensive life insurance and retirement solutions for long-term savings and protection.

A financially strong and stable company with focus on quality of advice, sound investment expertise and service excellence, Max Life Insurance has set in place value-driven culture and corporate governance through its superior human capital. The Company has a countrywide diversified distribution model, including the country’s leading agent advisors, exclusive corporate agency arrangement with Axis Bank and several other partners.

Max India set for mega corporate restructuring

Demerges into 3 business verticals – Life Insurance, Health & Allied businesses and Manufacturing Industries

The Board of Max India Ltd, approved a Corporate Restructuring plan to vertically split the company through a demerger, into three separate listed companies, to give investors specific and undiluted access to its diverse lines of businesses, provide sharper focus to each underlying business, and unlock shareholder value. The Board also approved divestment of its clinical research business.

Upon completion of the demerger, the existing company, Max India Limited, is proposed to be renamed ‘Max Financial Services Limited’ (MFS) upon demerger and will focus solely on the group’s flagship life insurance activity, through its 72.1% shareholding in Max Life, making it the first Indian listed company exclusively focused on life insurance. The Insurance Amendment Ordinance, recently promulgated by the President of India, and widely expected to be approved as an Act, has created renewed investor interest in the life insurance sector.

Upon completion of the demerger it is proposed to name the second vertical Max India Limited, which will continue to manage investments in the high potential Health and Allied businesses, essentially comprising : – Max Healthcare, Max Bupa, Antara Senior Living and supported by a Corporate Management Services team. The demerger will provide these businesses, which are currently in their growth and development phases, sharpened focus to fulfil their tremendous potential. The Corporate Management Services team will manage a shared services centre, which will provide functional support to all 3 verticals.

The third vertical will house the investment activity in the group’s manufacturing subsidiary, Max Speciality Films – an innovation leader in the Speciality Packaging Films business – and will be named Max Ventures and Industries Limited (MVIL). Set-up in 1989, the Speciality Packaging Films business has been consistently profitable. It recorded revenues of Rs. 746 Cr. and profit of Rs. 14 Cr in FY2014. The Prime Minister’s new initiative ‘Make in India’ is set to provide fresh impetus to this business and for this vertical, to start looking at fresh ideas in the ‘wider world of business’.

Max India has also initiated action for the divestment of its entire 100% stake in the clinical research business. Max Neeman entities in India and United States are proposed to be divested to a Canadian Contract Research Organization (CRO), JSS Medical Research Inc., for a consideration of US$ 1.5 Million, subject to successful completion of due diligence and signing of definitive agreements, expected by mid-February.

Once the demerger scheme is effective, after due regulatory approvals, Max India’s shareholders will retain one equity share of Rs 2/- in Max Financial Services Limited and will additionally get one equity share of Rs. 2/- each of Max India Limited for every one equity share of Rs. 2/- each held in Max Financial Services, and one equity share of Rs. 10/- each of Max Ventures and Industries Limited for every 5 equity shares of Rs. 2/- each held in Max Financial Services.

Max India currently has cash reserves of Rs. 605 Cr. as at December 31, 2014. It is proposed to split the cash reserves as on Appointed Date of April 1, 2015 between the 3 listed companies such that Max Financial Services Limited will hold Rs. 150 Cr., Max Ventures and Industries Limited will hold Rs. 10 Cr. and the balance, likely to be over Rs. 400 Cr., will be held by the newly formed Max India Limited.

The top leadership of Max India – Analjit Singh (Chairman), Rahul Khosla (Managing Director) and Mohit Talwar (Deputy Managing Director) – will continue in their roles and upon demerger, will continue to hold appropriate roles in the demerged entities of the Max group. The top leadership of the Max group’s operating companies will continue in their respective roles – Rajesh Sud, MD and CEO of Max Life and Chairman, Max Bupa, Rajit Mehta, DMD of Max Healthcare, Tara Singh Vachani, CEO of Antara, Jaideep Wadhwa, CEO of MSF and Mohini Daljeet Singh, Chief Executive of Max India Foundation.

Setting the context for the demerger, Analjit Singh, Chairman, Max India Ltd, said “The new government is setting a rapid pace for economic reforms. This structural reconfiguration readies us to capitalize on opportunities created by the anticipated all round growth acceleration and to henceforth look at the wider world of business opportunities.”

Explaining the rationale for the demerger, he added “Our bouquet of businesses is diverse, but each has considerable value and growth potential. This demerger will provide investors with a choice to continue to be associated with all these businesses, or only specifically invest in the set of businesses that suit their respective investment philosophy. For instance, the high growth healthcare business is poised to add significant additional capacity in future. The health insurance and senior living business are less than 5 years in operation and need significant focus, attention and capital, while the relatively mature business of life insurance provides a balance of growth and profitability.”

The Appointed Date for the demerger is April 1, 2015, and the demerger is expected to be completed within the next six to nine months.

The proposed demerger is subject to approval by Max India shareholders, its creditors and relevant regulatory authorities.

About Max India

Max India Group is a leading Indian multi-business corporate with a commanding presence in the Life Insurance, Healthcare and Health insurance sectors. In the financial year 2014, the Group recorded a consolidated turnover of Rs 117 billion. It has a total customer base of around 8 million, over 300 offices spread across India and people strength of around 18,000 as on 31st March 2014. Max India Limited is a widely held company, listed on the BSE and the NSE. Its founder sponsor Analjit Singh holds 40.5% stake in the company. Other shareholders include some of world’s best Institutional Investors such as Goldman Sachs, Temasek, IFC (Washington), Fidelity and New York Life.

For more details contact:

Nitin Thakur

Head – Communications
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 196
Cell # +91 9873347428
E-mail: [email protected]

Anisha Rakyan
Cell # +91 9811024077

E-mail: [email protected]

Garima Sharma

Cell # +91 9899175275

E-mail: [email protected]

Ritika Singh
Cell # +91 9654971565

E-mail: [email protected]

Max Bupa set to become one of the first to benefit from new insurance FDI Limited

BUPA TO INCREASE STAKE IN MAX BUPA TO 49%

Max Bupa Health Insurance (Max Bupa) today announced that it is set to become one of the first companies in India to benefit from the proposed increased limit for foreign direct investment (FDI) in insurance. Following the Insurance Laws Amendment Ordinance 2014 receiving legislative assent in the 2015 Budget Session of Parliament, Bupa, the international healthcare group, proposes to increase its stake in Max Bupa from 26% to 49%. Bupa will submit formal applications to the relevant authorities for the regulatory approvals required in order to increase its stake.

Max Bupa, a leading Indian standalone private health insurer, is a joint venture between Max India, one of India’s leading multi business corporates, which owns 74% of Max Bupa, and Bupa, the UK-headquartered global healthcare group, which owns 26%. Launched in 2010, Max Bupa is already the 7th largest private health insurer in India. With a customer base of two million across India, it continues to be amongst the fastest growing stand-alone health insurers. Max Bupa has focused on building a retail customer and product portfolio via multiple sales channels including agency, bancassurance, telesales and online.

Commenting on the decision to increase Bupa’s stake in Max Bupa, David Fletcher, Managing Director of International Development Markets at Bupa said: “This decision underlines Bupa’s commitment to the Indian health insurance market and represents a major milestone in the development of Max Bupa. With our partners Max India, we are committed to supporting Max Bupa’s growth and helping Indian consumers live healthier and more successful lives.”

Rahul Khosla, Managing Director, Max India Limited, Bupa’s JV partner, welcomed the decision. “Max Bupa has established its brand, developed a wide retail customer base and grown its share in the attractive health insurance market. As Max Bupa prepares itself for its next wave of growth, it will stand to benefit from Bupa’s expertise in areas such as under-writing health risks and product innovation. Bupa’s intention to increase its stake is testimony to the huge opportunity for health insurance in India and Max India’s reputation in successfully managing joint ventures.”

Max India is one of India’s leading multi business corporates with interests in life insurance, healthcare and health insurance. Since its inception almost three decades ago, it has successfully managed several joint venture partnerships. Talking about the recent reforms in India, Mr Khosla added, “Given that the Government has been in office for just six months, I congratulate the Prime Minister, Mr Modi and the Finance Minister, Mr. Jaitley for finding a way to drive the passage of such a major sectoral reform. This Government is pro business and has now also shown it means business.”

The application to increase Bupa’s shareholding in Max Bupa will be subject to successful completion of the law-making process as well as all relevant regulatory and legal approvals.

About Max Bupa Health Insurance

Max Bupa is a, 74:26, joint venture between Max India Limited, a multi-business corporate with expertise in life insurance and health care and Bupa, a leading international healthcare provider with 65 years of healthcare knowledge. Max Bupa brings together a combination of Bupa’s health insurance and customer service expertise with Max India’s understanding and experience of the Indian health and insurance sectors. Max Bupa offers quality health insurance services through a dedicated team of over 1400 people and its network of 26 offices across 16 cities – Delhi, Mumbai, Hyderabad, Chennai, Bangalore, Pune, Ludhiana, Chandigarh, Jaipur, Surat, Kochi, Kolkata, Patna, Goa, Jodhpur and Ludhiana. Max Bupa offers individual and family oriented health insurance policies for Indians across all age groups.

Max Bupa has a direct working relationship with a network of over 3500 top quality hospitals and healthcare providers, with plans to extend its network of hospitals to other parts of the country. Max Bupa services customers directly without third party involvement. For more details about the company and a list of all our network hospitals please visit  www.maxbupa.com.

About Bupa

As a leading international healthcare group, Bupa offers health insurance and other health funding products, and runs care homes, retirement villages, hospitals, diagnostic and primary care centres and dental clinics. Bupa also provides workplace health services, home healthcare, health assessments and long-term condition management services.

 

Bupa has over 22 million customers in 190 countries and territories. With no shareholders, it invests its profits to provide more and better healthcare and fulfill its purpose: longer, healthier, happier lives.

 

Bupa employs more than 70,000 people, principally in the UK, Australia, Spain, Poland, New Zealand and Chile, as well as Saudi Arabia, Hong Kong, India, Thailand and the USA.

 

For more information, please visit:www.maxbupa.com.

About Max India

Max India Group is a leading Indian multi-business corporate with a commanding presence in the Life Insurance, Healthcare and Health insurance sectors. In the financial year 2014, the Group recorded a consolidated turnover of Rs 117 billion. It has a total customer base of over 7.5 million, nearly 300 offices spread across India and people strength of around 17,000 as on 31st March 2014. Max India Limited is a widely held company, listed on the BSE and the NSE. Its founder sponsor Analjit Singh holds 40.5% stake in the company. Other shareholders include some of world’s best Institutional Investors such as Goldman Sachs, Temasek, IFC (Washington), Fidelity and New York Life.

Press Contacts:

Bupa

Vasudevan Rangarajan

Office: +91 124 4131 481

Mobile : +91 95602 77755

Email: [email protected]

Max India

Nitin Thakur

Mobile: +91 9873347428

E-mail: [email protected]

Anisha Rakyan

Mobile: +91 9811024077

E-mail:[email protected]

Max Bupa wins the ‘IT Leadership Award’ at the Asia Insurance Technology Awards 2014

·         Recognized for effective implementation of business process automation platform significantly reducing service turn-around time

·      Third recognition in a year for technology expertise

New Delhi, November 24, 2014: Max Bupa Health Insurance has been conferred with the ‘IT Leadership Award’ at the Asia Insurance Technology Awards 2014. The company has received this coveted recognition for the effective implementation of its business process automation platform that has significantly reduced customer service turn-around time and operating costs. The awards were presented at the third edition of Asia Insurance CIO Technology Summit held in Singapore last week. This is Max Bupa’s third recognition in the year for its technology prowess and excellence.

 

Offering exceptional customer service by rapidly adapting to the evolving consumer needs has been Max Bupa’s focus since the time of inception. The company is committed to providing a seamless and personalized customer experience through advanced technological implementation of smart and hassle free processes.

 

Max Bupa has made significant investment in its technology capabilities, including in-house development and support teams to ensure agility and responsiveness for changing business needs. These solutions enhance customer experience through improved interactions and reduced customer response timelines.

 

Manasije Mishra, CEO, Max Bupa, said, “As committed health partners to our customers, it is our constant endeavour to offer them best in class health insurance products coupled with an exceptional customer service. We are committed to investing in technologies and solutions that enable a seamless customer experience. It is an honour to be recognised for our technological proficiency at such a coveted platform.”

 

Somesh Chandra, Director – Customer Service, Operations, Technology & Chief Quality Officer at Max Bupa added, “At Max Bupa, we keep pace with the technological advancements by making continuous investments to ensure competitive advantage. Successful implementation of the business automation platform has significantly helped us improve agility while addressing customer needs, at the same time also helping us cut down operation costs. The award is a testimony for our commitment to customers and serving them well.”

 

The Asia Insurance Technology Awards recognize excellence and innovation in the use of technology within the insurance industry in the Asia Pacific Region. The awards were presented by research and consulting firm, Celent and Asia Insurance Review, a premier and comprehensive magazine addressing the information needs of insurance practitioners in Asia.

 

Earlier this year, Max Bupa was also conferred with the Model Insurer Asia of the Year 2014 by the analyst firm Celent for usage of advanced technology in insurance. Max Bupa was also recognised for its ‘Technology Maturity’ by India Insurance Awards 2014 for focused utilization of technology to deliver the best in class service to its customers.

 

Note to the editors:

About Max Bupa Health Insurance

Max Bupa Health Insurance is a, 74:26, joint venture between Max India Limited, a multi-business corporate with expertise in life insurance and health care and Bupa Global, a leading international healthcare provider with 65 years of healthcare knowledge. Max Bupa brings together a combination of BupaGlobal’s health insurance expertise and customer service expertise with Max India’s understanding and experience of the Indian health and insurance sectors. Max Bupa offers quality health insurance services through a dedicated team of over 1300 people and its network of 25 offices across 16 cities – Delhi, Mumbai, Hyderabad, Chennai, Bangalore, Pune, Ludhiana, Chandigarh, Jaipur, Surat, Kochi, Kolkata, Patna, Goa, Jodhpur, Ludhiana and Gurgaon. Max Bupa offers individual and family oriented health insurance policies for Indians across all age groups.

 

Strong Network of 3500 hospitals

Max Bupa Health Insurance has a direct working relationship with a network of over 3500 top quality hospitals and healthcare providers and at the same time the company plans to extend its network of hospitals to other parts of the country. Max Bupa services customers directly without third party involvement. For more details about the company and a list of all our network hospitals please visit www.maxbupa.com.

 

Max India Foundation and the Karmapa’s Kagyupa International Monlam Trust Launch MultiSpeciality Health Camp for the Poor

Bodhgaya, Bihar 3–5 January 2015

January 3rd, 2015, Bodhgaya .On the occasion of the 32nd Kagyu Monlam Prayers for World Peace, led by His Holiness the 17th Karmapa Ogyen Trinley Dorje, the Max India Foundation (MIF) is delighted and humbled to join hands with the Kagyupa International Monlam Trust in bringing better health to the residents of Bodhgaya through a three-day Multi- Speciality Health Camp. MIF’s mission is to make quality healthcare services available to the poor and the needy. Since its establishment in 2008, MIF have conducted multi-speciality camps in different parts of India, including remote tribal areas in Madhya Pradesh, Andhra Pradesh, Ladakh and Punjab. In recognition of its deep commitment to Corporate Social Responsibility (CSR) and the significant impact the Foundation has made on the lives of the needy, Max India Foundation has received numerous awards including the prestigious Golden Peacock Global Award for Best CSR for three years running.

The Karmapa Ogyen Trinley Dorje is one of the foremost Tibetan Buddhist leaders after the Dalai Lama and the Panchen Lama. The Karmapa established the Kagyupa International Monlam Trust in 2006 to bring together his devotees to pray for world peace in Bodhgaya, Bihar, the place of Lord Buddha’s enlightenment., . Thisyear’s prayer gathering is attended by over 10,000 devotees from across the Himalayas and over 30 countries of the world.

In addition to the prayer gathering, the Kagyupa International Monlam Trust carries out other charitable activities including an annual health camp for the local residents, a soup kitchen for the poor, distribution of blankets for the needy and an animal health camp. Further, based on the principle of interdependence and interconnectedness, the Karmapa strongly advocates personal responsibility in caring for those around us and for the environment.

The Max India Foundation and the Kagyupa International Monlam Trust are pleased to make an auspicious start of 2015 with the launching of a Multi-Speciality Health Camp in Bodhgaya from 3–5 January 2015. The Max India Foundation team comprises specialists in internal medicine, gynaecology, dermatology and a pediatrician. They will be present at the camp and provide necessary consultation and medicines to the needy. Jan Jagran Sansthan, a local grass roots NGO based in Patna, is supporting the outreach to the local communities. Through our common aspiration, it is hoped that this joint endeavour will contribute to well-being of all the residents of Bodhgaya.

About MIF

Max India Foundation (MIF), the Corporate Social Responsibility arm of Max India Group, started its work in 2008. Max India Foundation spearheads the CSR initiatives of Max India Group of Companies. Social initiatives for Max Life Insurance, Max Healthcare, Max Speciality Films, Max Bupa, and Max India Corporate are planned and executed through the Foundation. In a short span of about five years, Max India Foundationhas been able to make a significant difference in the lives of over 5,00,000 people across more than 360 locations throughout India. Max India Foundation works with over 250 reputed NGO partners working with them at the grassroots level in many locations. MIF’s mission is to provide quality healthcare to the underprivileged and facilitate awareness of health related issues and an eco-friendly environment.

Completing six years of operations in January 2014, Max India Foundation has proved its track record and emerged as a leader and role model in healthcare for corporate volunteers.. Max India Foundation has created a niche for itself in this area by focusing in special areas:·

Providing quality healthcare for people of the economically weaker section of society

  • Creating awareness ofhealth issues such as women’s health, cancer, diabetes, cardiovascular diseases, and immunisation of children
  • Working towards a sustainable and eco-friendly environment

Max India Foundation supports programmes that facilitate quality healthcare for the underprivileged population. To achieve this, they have joined hands with similar spirited organizations covering a wide spectrum of initiatives. Some of these initiatives include: Surgeries and Pan India Immunization; Health Camps; Artificial Limbs and Polio Calipers Camp.

Some of the reputable NGO’s MIF has partnered regularly with are CanSupport, SOS Children’s Village, Manav Seva Sannidhi, and Chinmaya Mission. Together they undertake initiatives such as pan India immunization programs, surgeries for underprivileged, artificial limb and polio calipers camp, multi-speciality camps, blood donation camps, onboard rail operation theater known as Life Line Express, the Clean Delhi Clean Yamuna campaign, and support for disaster relief victims.

Max India’s Q2FY15 Consolidated operating revenue increases 15% to Rs 2483 Cr, PBT up 26% to Rs 117 Cr.

Financial Highlights

  • Max India’s Q2FY15 EBITDA up 21% at Rs 184 Cr
  • Max India proposes a dividend of 200% amounting to Rs 107 Cr
  • Max Life’s Individual new business premium (APE) for Q2 grows 5% to Rs. 436 Cr, in line with the private industry growth of 5%
  • Max Healthcare(MHC) sees growth of 24% in operating profit to Rs 435 cr in Q2FY15
  • LHC’s stake equalization in MHC leads to an inflow of Rs 383 cr to Max India
  • Max Bupa outperforms private life insurers; market share grows 21% over previous year
Below is a summary of the consolidated financials of Max India
Max India Quarter ended Sept 2014 Quarter ended Sept 2013 Change
Operating Revenue Rs 2483 Cr. Rs 2158 Cr. 15%
EBIDTA Rs 184 Cr. Rs 152 Cr. 21%
PBT Rs 117 Cr. Rs 93 Cr. 26%

Press statement:

New Delhi, 12 November 2014: Max India Ltd., one of India’s leading multi-business corporates,today announced its second quarter results of FY15. The Company reported a 47% increase in its Q2 FY15 consolidated revenue to Rs 3,291 Cr, over same quarter, previous fiscal. Operating revenue increased by 15% to Rs 2,483 and EBITDA rose by 21% to Rs 184 Cr for the same period. Profit Before Tax (PBT) rose 26%, to Rs. 117 Cr.

The key contributing factors to the company’s strong performance has been MLIC’s shareholder’s profits increasing by 21% to 165 Cr and Max Healthcare’s cash profit growth by 180% to Rs 22 Cr.

Key results highlights of Max India’s subsidiaries

Max Life Insurance, a 71% subsidiary of Max India, continued to outperform the industry by posting an impressive individual new business premium (APE) growth of 5%, to Rs 436 Cr vs Q2 FY14. The Gross Premium (GWP) of the Company grew 15% to Rs. 1937 crore and Assets Under Management (AUM) were up 29% to Rs. 28,038 crore.

Max Healthcare is a 46%* equal joint venture of Max India with LHC reported a growth of 24% in net revenue to Rs 435 Cr, and 44% growth in EBIDTA, to Rs. 45 Cr. It’s cash profit also grew by 180% to Rs 22 Cr. Life Healthcare completed its stake equalization with Max India, in Max Healthcare in the current quarter, at an Enterprise Value of Rs 3,650 Cr

Max Bupa Health Insurance, a 74% subsidiary of Max India posted, a growth of 21% in Gross Written Premium to Rs 86 crore. It’s average premium realization increased to 23% to Rs 6,452.

Antara Senior Living, a 100% subsidiary of Max India, serving the high potential Senior Living industry, continues to generate considerable media and public interest and witnessed encouraging sales momentum for its maiden senior living community being built at Dehradun

Max Speciality Films (MSF), a subsidiary of Max India since 1 April 2014, saw a 25% increase in EBIDTA to Rs 20 Cr in Q2FY15

About Max India

The Max India Group is a multi-business corporate, driven by the spirit of enterprise and focused on people and service oriented businesses. The Company is headquartered in New Delhi, India. Max India is in the ‘Businesses of Life’ with its vision to be one of India’s most admired corporates for service excellence – in what we do, how we do it and the positive impact we have on society and our stakeholders. It ‘Protects Life’ through its Life Insurance subsidiary Max Life, a joint venture between Max India and Mitsui Sumitomo Insurance, Japan; ‘Cares for Life’ through its Healthcare company, Max Healthcare, a joint venture between Max India and Life Healthcare, South Africa; ‘Enhances Life’ through its Health Insurance company, Max Bupa Health Insurance, a joint venture between Max India and Bupa Finance Plc., UK; ‘Rejuvenates Life’ through its Senior Living business Antara, a fully owned subsidiary of Max India and ‘Improves Life’ through its Clinical Research business, Max Neeman, a fully owned subsidiary of Max India. The Group also continues its interest in manufacture of Speciality Products for the packaging industry through its fully owned subsidiary Max Speciality Films.

The Group’s businesses have built commanding presence in their respective sector, through a total customer base of nearly 7.5 million, over 300 offices spread across India and a people strength of over 70,000 persons. Max India remains committed to excellence in Corporate Governance and recognizes that in today’s world, it is an important driver for building all round excellence, attracting high-quality talent and intelligent capital. The Group and its companies are Shareholder steered, Board governed and Executive managed. The Board thoroughly evaluates business performance on nine strategic levers – enhancing business performance, investing in people and organisational development, creating efficiency in capital management, adopting an integrated enterprise-wide approach, investing sensibly in new growth opportunities, maintaining the highest standards of governance, continuously improving service quality, developing a distinct corporate brand and effectively managing risk.

The flagship company Max India Limited is a widely held public limited company, listed on the BSE & the NSE. Analjit Singh, Founder & Chairman, is the lead shareholder in Max India with around 40.5% holding. Other leading shareholders in the company include some of world’s leading Institutional Investors, such as Goldman Sachs, International Finance Corporation, Washington (IFC), and Temasek Holdings.

For more details contact:

Nitin Thakur

Head – Communications
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 196
Cell # +91 9873347428
E-mail: [email protected]

Anisha Rakyan

Manager-Brand & Communications
Max India Limited
Max House, Okhla – III, New Delhi-110 020
Tele # 2693 3610 Extn. 240, Cell # +91 9811024077
E-mail:[email protected]

Connect with Max India on social media:
Mobile: +91 9811024077
E-mail:[email protected]