Max New York Life Insurance posted a net profit of Rs 283 crore for fiscal 2010-11, thanks to reduction in costs and a steady growth in new business premium. The growth in profit is almost 12 times higher than the Rs 24 crore recorded in the year-ago period.

The total revenue or premium income for the just ended fiscal grew 20 per cent to Rs 5,812 crore (Rs 4,861 crore). Of this, new business premium increased by 11 per cent to Rs 2,061 crore and renewal premium grew 25 per cent to Rs 3,751 crore.

The sum assured grew 26 per cent to Rs 1,54,687 crore (Rs 1,23,288 crore) and the assets under management increased 37 per cent to Rs 13,836 crore (Rs 10,116 crore).

The company reduced its cost ratio to 38 per cent (42 per cent) during the year. The conservation ratio was at 82 per cent.

Stake sale

Speaking to newspersons while announcing the company's results, Mr Rajesh Sud, CEO and MD, said the company has received regulatory approval to sell 4 per cent of its stake to Axis Bank. The two have also entered into a bancassurance agreement to sell insurance policies.

This year the company is not looking to infuse fresh capital as its growth plans can be achieved through internal accruals, Mr Sud said. The paid-up capital as on March 31, 2011, was Rs 1,976 crore.

The solvency margin improved to 365 per cent (322 per cent).

Currently, bancassurance accounts for 23 per cent of the sales, while the agency channel accounts for 47 per cent.

Axis Bank and Yes Bank are the two large bancassurance partners. In addition, the company also has tie-ups with about 40 co-operative banks, Mr Sud said.

Currently, ULIPs account for 61 per cent of the total number of policies sold. But going ahead the share of traditional policies may move up slightly, due to customers' demands, Mr Sud said.

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