Max Financial Services announces Embedded Value (EV) for Max Life at Rs. 6,204 Cr.*; Return on EV (RoEV): 22%

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

25th November 2016, New Delhi

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

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

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

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

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

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

 

About Max Group

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

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

About Max Financial Services Limited

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

 

For information please contact:

Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Beedisha Chakrabarti
beedisha.chakrabarti@text100.co.in
+91 9899003192

Jayant Singh
jsingh@maxindia.com
+91 9999162213

H1 FY2017 Results Highlights:

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

 

4th November 2016, New Delhi

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

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

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

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

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

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

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

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

 

About Max Group

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

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

About Max Financial Services Limited

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

For information please contact:

Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Beedisha Chakrabarti
beedisha.chakrabarti@text100.co.in
+91 9899003192

Jayant Singh
jsingh@maxindia.com
+91 9999162213

Q1 FY2017 Results Highlights:

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

 

8th August 2016, New Delhi

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

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

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

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

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

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


 

About Max Group

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

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

About Max Financial Services Limited

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

For information please contact:

Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Beedisha Chakrabarti
beedisha.chakrabarti@text100.co.in
+91 9899003192

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Transaction Advisors

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

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

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

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

About HDFC Life

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

About Max Life

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

About Max Financial Services

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

17 June 2016, Mumbai

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

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

Follow up announcements shall be made as necessary.

About HDFC Life

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

About Max Life

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

About Max Financial Services

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

For information please contact:

Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Anshuman Dutta
Anshuman.Gunjan@text100.co.inc
+91 9971553969

FY2016 Results Highlights:

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

31 May 2016, New Delhi

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

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

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

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

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

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

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

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

About Max Group

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

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

About Max Financial Services Limited

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

For information please contact:

Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Beedisha Chakrabarti
beedisha.chakrabarti@text100.co.in
+91 9899003192

Jayant Singh
jsingh@maxindia.com
+91 9999162213

Max Financial Services Limited Makes its Listing Debut with Stellar Profits

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

 

12 February 2016, New Delhi

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

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

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

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

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

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

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

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

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

 

About Max Financial Services Limited

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

 

For information please contact:

Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Beedisha Chakrabarti
beedisha.chakrabarti@text100.co.in
+91 9899003192

Jayant Singh
jsingh@maxindia.com
+91 9999162213

 

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

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

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

For media queries please contact:
Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Priyanka Guha
priyanka.guha@text100.co.in
8373924991
Jayant Singh
jsingh@maxindia.com
+91 9999162213

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

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

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

Annexure:

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

For information please contact:
Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Jayant Singh
jsingh@maxindia.com
+91 9999162213
Beedisha Chakrabarti
beedisha.chakrabarti@text100.co.in
+91 9899003192

Priyanka Guha
priyanka.guha@text100.co.in
+91 8373924991

15th January, 2016, New Delhi

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

Annexure:

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

For information please contact:
Nitin Thakur
nthakur@maxindia.com
+91 9873347428

Beedisha Chakrabarti
beedisha.chakrabarti@text100.co.in
+91 9899003192

Jayant Singh
jsingh@maxindia.com
+91 9999162213