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Aided by the strong performance of its life insurance subsidiary Max Life Insurance, Max Financial Services Ltd (MFSL) has reported a 235 per cent increase in consolidated net profit for the first quarter ended June 30 at ₹182 crore.
Consolidated revenues for the quarter under review grew 40 per cent year-on-year at ₹5,517 crore.
In the first quarter, Max Life reported shareholders’ profit after tax of ₹171 crore, up 151 per cent over the same quarter in previous year. Total revenues grew 2 per cent to ₹3,616 crore.
Mohit Talwar, Vice Chairman, Max Group, and Managing Director, Max Financial Services, said: “Max Life has rebounded commendably, outpacing the competition with its growth. This has been possible due to the emphasis on strengthening digital channels, which has allowed Max Life to function remotely almost entirely from sales to customer on-boardingand after-sales.
The company has successfully invested in product innovations to capture emerging opportunities by creating a balanced product mix of traditional savings-cum-protection plans, unit-linked plans and pure protection products.”
Despite an impact on new sales due to Covid-19 towards the end of FY2020, Max Life picked up momentum in the first quarter of FY21 and gained market share by 217 bps to 11 per cent.
The individual protection penetration saw a 103 per cent increase in the first quarter, indicating that every second policy sold was a protection policy. In the same period, individual new business sum assured grew by 39 per cent.
Max Life’s Individual APE was recorded at ₹660 crore in Q1 FY21, despite headwinds due to Covid-19.
This was driven by a growth of 8 per cent in proprietary channels, 5 per cent in agency channels, and 31 per cent in e-commerce. This reflects the industry outperformance in individual APE. Private players de-grew by 23 per cent, whereas Max Life de-grew by only 4 per cent.
Max Life has reported a Market-Consistent Embedded Value of ₹10,670 crore, with an Operating Return on Embedded Value of 16 per cent. The value of new business written during the first quarter of FY21 was ₹113 crore, while the new business margin stood at 17 per cent. In this period, Max Life’s Assets under Management stood at ₹73,239 crore, growing 15 per cent year-on-year.
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