Max Financial Services (MFS) on Monday announced an embedded value (EV) of ₹6,946 crore as of end-September for its life insurance business, Max Life.

This represents a 17 per cent annualised growth in EV on a year-on-year basis. The EV as on end-March 2017 stood at ₹6,590 crore.

As on date, MFS has 70 per cent equity stake in Max Life.

Max Life’s value of new business (VNB) written during the first half of this fiscal stood at ₹204 crore, up 16 per cent over the corresponding period last year. The new business margin for the first half stood at 18.1 per cent, a company release said.

Meanwhile, the management of MFS has provided a new business margin guidance of close to 20 per cent for the full year 2017-18, compared with 18.8 per cent achieved in 2016-17.

Financial performance MFS reported consolidated revenues of ₹3,435 crore in the second quarter ended September 30, up 12 per cent over the same period previous year. For the first half this fiscal, consolidated revenue grew 13 per cent to ₹6,002 crore.

However, profit before tax fell 37 per cent in the first half to ₹197 crore, due to one-off gains from investment income and reserve release last year.

For the quarter ended September 30, Max Life reported individual adjusted sales of ₹654 crore, up 18 per cent over the previous year. In the first half, individual adjusted sales grew 19 per cent to ₹1,112 crore.

Rahul Khosla, President, Max Group, and Chairman, Max Life, said: “With the potential merger with HDFC Life behind us, our focus has firmly shifted to aggressively pursuing profitable growth through investments in our proprietary channels such as agency and digital, enhancing policyholder experience, leveraging our strong bancassurance partnerships and forging new distribution alliances.”

He also said that Max Life has renewed its focus on strengthening its franchise by evaluating acquisition opportunities that have started to emerge in the insurance space.

Srivats.kr@thehindu.co.in

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