Q3 FY2017 Results Highlights:
- MFS Consolidated Revenues1: Rs. 3,349 Cr., grew 26%
- Max Life AUM as at 31st 2016: Rs. 40,920 Cr., grew 20%
10th February 2017, New Delhi
Max Financial Services Ltd. (MFS) today announced financial results for the third quarter of FY2017 (Q3 FY2017). MFS, which is the first of only two listed companies providing pure access to the Indian private life insurance sector, reported strong growth in topline and bottomline with consolidated revenues1 of Rs. 3,349 Cr. and consolidated Profit after Tax (PAT)2 of Rs. 160 Cr. in Q3 FY2017, growing 26% and 52%, respectively, over the corresponding period last year.
In the nine months so far (9M FY2017), the Company has reported consolidated revenues of Rs. 8,655 Cr., and PAT2 of Rs. 416 Cr., growing 21% and 34%, respectively.
MFS’ sole operating subsidiary Max Life Insurance performed strongly on all business parameters maintaining its position as the best-in-class provider of long-term savings and protection products. In Q3 FY2017, Max Life reported Individual Adjusted Sales of Rs 654 Cr., growing 41%, revenues1 of Rs. 3,341 Cr., growing 26%, and PAT of Rs. 177 Cr, growing 50% over the same period last year. In 9M FY2017, the business reported Individual Adjusted Sales of Rs 1,590 Cr., revenues1 of Rs. 8,626 Cr. and PAT of Rs 463 Cr., growing 26%, 21% and 36%, respectively, over the same period last year.
Max Life’s Assets Under Management (AUM) stood at Rs. 40,920 Cr. as at 31st December 2016, growing 20% over last year.
In August 2016, the Board of Directors of Max Life Insurance Company, Max Financial Services Ltd., Max India Limited and HDFC Standard Life Insurance Company Ltd. (HDFC Life), at their respective meetings had finalized agreements for the amalgamation of business between the entities through a composite Scheme of Arrangement. In the ensuing period, both the entities have progressed with regulatory approvals as planned.
Commenting on the Company’s performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “Max Life is one of the fastest-growing life insurers in India which maintains its core proposition of offering long-term savings and protection products through a well diversified distribution architecture comprising market-leading agency and bancassurance capabilities supported by high-quality service and returns to policyholders.”
Sharing an update on the status of the proposed merger of Max Life with HDFC Life, Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd. said, “We have made initial regulatory filings and approvals are being progressed. We have also made our representation to IRDAI on the structure of the merger and are currently awaiting their response. While we progress on the proposed merger, Max Life continues to be one of the fastest-growing private life insurers with a strong emphasis on profitability, solvency and embedded value growth. At the same time, ensuring high levels of customer satisfaction within the framework of TCF policies remains a priority for the business.”
The proposed merger is subject to applicable board, shareholder, regulatory, respective High Courts and other third-party approvals.
About Max Group
The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY 2016, the Group recorded consolidated revenues of Rs 14,237 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2016.The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Fidelity, Ward Ferry, New York Life, Wasatch and Invesco.
The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.
About Max Financial Services Limited
Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.
1 Excludes Max Life Unit Investment Income
2 Before adjusting for minority interest
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