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