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
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+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]
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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

19^th 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 30^th, 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

28^th 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 15^th, 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 15^th, 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 30^th, 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

13^th 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 3^rd largest private bank and 4^th 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 27^th April 20. This is an outcome of the inter-se discussions after the three companies had signed a confidentiality and exclusivity arrangement on 20^th 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:

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:

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 4^th 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 7^th 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

20^th 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:

[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%

5^th 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)

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%

9^th 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 30^th June 2017, stood at Rs. 45,870 Cr, making it the 5^th 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 31^st 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

Max merger with HDFC Life called off

31^st 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 31^st 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 31^st 2017): Rs. 44,370 Cr., grew 24%

30^th 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 31^st 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 31^st 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]t100.co.in
+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 31^st 2016: Rs. 40,920 Cr., grew 20%

10^th 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 31^st 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