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 30th, 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.”
 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