Max Financial Services Revenue up 50 percent to Rs. 7,020 Cr., PAT up 26 percent to Rs. 81 Cr. in Q2 FY21
Oct 30, 2020
New Delhi [India], Oct 30 (ANI/NewsVoir): 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 crore, growing 50 per cent year-on-year due to higher investment income. Consolidated PAT1 grew 26 per cent to Rs 81 crore due to reversal of impairment loss on investments.
In Q2 FY21, Max Life2 reported Shareholders' PAT of Rs 26 crore, down 70 per cent 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 11per cent 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 crore, in H1 FY21, with an Operating Return on Embedded Value (RoEV) of 17.5 per cent.
The Value of New Business (VNB) written during H1 FY21 was Rs 438 crore, growing 20 per cent year-on-year and New Business Margin (NBM) stood at 24.2 per cent, expanded by 320 bps over last year, arising from shift in product mix towards NPAR - Savings and protection products.
Individual protection grew by 78 per cent year-on-year and penetration increased to 12 per cent in H1FY21 compared to 7 per cent in H1FY20. Renewal Premium grew 16 per cent to Rs 4,789 crore. In this period Max Life's Assets under Management (AUM) stood at Rs 77,764 crore, growing 19 per cent year-on-year.
Max Life's Individual APE for Q2FY21 were recorded at Rs 1,144 crore, grew 10 per cent, driven by Bancassurance sales growth of 19 per cent. E-commerce channel grew by 68 per cent 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.
"Despite the prolonged headwinds caused by a global pandemic, Max Life has clocked in an overall growth of 4 per cent, 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 per cent private market share - the highest in the last decade," said Mohit Talwar, Vice Chairman, Max Group & Managing Director, Max Financial Services
[1] Consolidated numbers have been reported basis IndAS
[2] Max Life numbers are reported on IGAAP basis and Revenue excludes Unit linked Investment Income
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 per cent 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 per cent 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.
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 crore. As on March 31, 2020 the Company had Rs 68,471 crore. of Assets Under Management (AUM) and a Sum Assured in Force of Rs 913,660 crore.
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