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Max Financial Services Ltd (MFSL) has reported a 54 per cent increase in consolidated net profit for the third quarter ended December 31, 2020, at ₹227 crore. Aided by higher investment income, the company’s consolidated revenues grew 68 per cent year-on-year to ₹8,990 crore for the quarter ended March 31, 2020.
For the quarter under review, Max Life Insurance – the sole subsidiary of MFSL – reported Gross Written Premium of ₹4,629 crore, up 19 per cent over the previous year. Shareholders’ PAT stood at ₹ 220 crore, up 43 per cent over the previous year.
Mohit Talwar, Managing Director, Max Financial Services, said in a statement: “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, where Non-Par and Protection products continue to lead in sales growth and margin expansion. Our business apparatus, which was rapidly digitised 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 per cent.”
This quarter, MFSL has also moved a step closer to the conclusion of its much-anticipated deal with Axis Bank, with a CCI approval for 12 per cent stake acquisition in Max Life by the bank and its subsidiaries, Axis Capital Limited and 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.
For the nine months ended December 31, 2020, Max Life reported a Market-Consistent Embedded Value (MCEV) of ₹11,723 crore with an Operating Return on Embedded Value (RoEV) of nearly 18 per cent.
The Value of New Business (VNB) written during 9 months in FY21 was ₹788 crore, growing 37 per cent year-on-year, due to shift in the product mix towards NPAR savings and protection products. New Business Margin (NBM) of 25.9 per cent expanded by 490 bps over last year. Focus on protection growth continued with 54 per cent retail growth, and penetration increased to 10 per cent in 9M FY21, compared to 8 per cent in 9M FY20.
Renewal Premium grew 16 per cent to ₹ 7,669 crore In this period, Max Life’s Assets under Management (AUM) grew 23 per cent to ₹ 84,724 crore.
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