Embedded Value 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: Rs. 12,971 Cr., grew 19%
- MFS Consolidated Net Profit3: Rs 395 Cr., grew 56%
- Max Life Shareholder PBT: Rs. 768 Cr., grew 50%
- Max Life Assets Under Management (as at 31st 2017): Rs. 44,370 Cr., grew 24%
30th May 2017, New Delhi
Max Financial Services Ltd. (MFS) today announced financial results for the fourth quarter (Q4 FY2017) and financial year 2016-17 (FY2017). MFS, which is the first of only two listed companies providing pure access to the Indian private life insurance sector, reported strong financial growth with consolidated revenues2 of Rs. 12,971 Cr. and consolidated Net Profit3 of Rs. 395 Cr. in FY2017, growing 19% and 56%, respectively, over the previous year.
In Q4 FY2017, the Company reported consolidated revenues2 of Rs. 4,316 Cr., and Net Profit of Rs. 118 Cr., growing 17% and 134%, respectively.
MFS’ sole operating subsidiary Max Life Insurance showcased robust growth on all business parameters, marking FY2017 as its strongest performance of the decade. In Q4 FY2017, the company reported revenues of Rs 4,309 Cr. and PBT of Rs. 219 Cr., growing 17% and 99%, respectively, over the same period last year.
In FY2017, Max Life reported Individual Adjusted Sales of Rs 2,639 Cr., growing 25% and revenues of Rs. 12,937 Cr., growing 19%. Max Life reported Shareholders’ Profit Before Tax of Rs. 768 Cr., growing 50% due to strong revenue growth, higher realised investment income, and favourable product mix. Max Life’s Embedded Value stood at Rs. 6,590 Cr. as at 31st March 2017 with an Operating Return on EV (RoEV) of 20%. The Value of New Business (VNB) written during FY2017 was Rs 499 Cr, growing 29% over the previous year, and the new business margin stood at 18.8%, Max Life’s Assets Under Management (AUM) stood at Rs. 44,370 Cr. as at 31st March 2017, growing 24% over last year. While Max Life maintained its overall market share at 9% in FY2017, it hit an important milestone in its digital journey by transitioning from a challenger to a market leader in Online Term Sales. Max Life’s e-Commerce channel reported an overall growth of 89% in FY2017.
Commenting on the Company’s performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “Over the last two decades, Max Life has grown into one of the largest, fastest-growing and highest quality private life insurance businesses driven by market leading performance across key parameters, operational efficiencies, a robust and diversified distribution architecture, a profitable agency force and significant growth potential. It speaks volumes of the company’s underlying strength that even at a stage of maturity in 2017, the business has delivered its strongest financial performance in 10 years.”
Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd. said, “Max Life has delivered a stupendous performance with a 20% operating return on embedded value and a 29% growth in value of new business. Max Life will continue to lay strong emphasis on profitability, solvency and embedded value growth to ensure the best returns to its stakeholders.”
In August 2016, the Board of Directors of Max Life Insurance Company, Max Financial Services Ltd., Max India Limited and HDFC Standard Life Insurance Company Ltd. (HDFC Life), at their respective meetings had finalized agreements for the amalgamation of business between the entities through a composite Scheme of Arrangement. Currently, both the entities are in the process of seeking regulatory approvals.
About Max Group
The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY2017, the Group recorded consolidated revenues of Rs. 16,798 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2017. The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Fidelity, Vanguard, Ward Ferry, New York Life, Wasatch and Invesco.
The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.
About Max Financial Services Limited
Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.
 EV post final shareholder dividend
2 Excludes Max Life Unit Investment Income
3 After adjusting for minority interest
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