New Delhi [India]January 29 (ANI/NewsView): Max Financial Services Limited (MFSL) today announced its financial results for the quarter (Q3) and nine months of the financial year FY22 (9MFY22).
In financial year 9MFY22, MFSL reported consolidated revenue^ of Rs. 14,160 Cr., representing a growth of 21% compared to the corresponding period a year ago.
Consolidated Profit Before Tax (PBT) in 9MFY22 was Rs. same period last year.
MFSL’s sole operating subsidiary, Max Life, continued to grow maintaining a 5-year CAGR of 18% on new individual business, compared to 13% 5-year CAGR of the top 3 listed life insurers. It has also consistently been in the top quartile of life insurers in India. Additionally, sales of Max Life New Business (based on APE*) increased by 23% on an annual basis to Rs. 3,751 cr. in 9MFY22 and 30% to Rs. 1,594 Cr. in Q3FY22, mainly driven by strong growth across all channels.
In addition, renewal premium income (including band) increased by 19% to Rs. 9,128 cr. from Rs. 7,669 cr. in the period of a year ago. This propelled a 21% increase in gross written premium to Rs. 14,415 Cr in 9MFY22 from Rs. 11,192 cr. in FY21.
This strong performance was recorded despite a more severe impact from the second wave of COVID-19 compared to the first wave. Claim experiences were higher than expected across all lines of business, with significantly higher variance for protection and group businesses. Max Life maintained its 4th rank in private industry.
In terms of industry performance, on a 2-year CAGR, Max Life jumped 16% compared to growth of 11% in the entire private industry.
Max Life emphasized a balanced product mix, which contributed to a 20% growth in Value of New Business (NBV) to Rs. 942 Cr. in 9MFY22 from Rs. 788 Cr in the period of a year ago. VNB has grown at a CAGR of 27% over the past five years.
The higher growth in VNB’s numbers is due to higher sales and a changed business mix, underlining Max Life’s strong growth momentum. New Business Margin (NBM) for 9MFY22 was 25.1% and in line with FY21 margins.
Max Life reported an integrated value (EV) of Rs. 13,412 cr. in 9MFY22 – a slight increase of 19% from Rs. 11,723 cr. year over year, driven by new business value growth and in-force business quality. Operating return on EV (RoEV) in 9MFY22 came in at 19.2%, a surge of 120 basis points**. Assets Under Management (AUM) in the first nine months of FY22 grew by 21% to Rs. 1.02 trillion from Rs. 84,724 Cr in the year-ago period.
Max Life conducted the “India Retirement Index Study” (IRIS) in partnership with Karvy Insights. India’s retirement index stood at 44 in terms of health and financial preparedness and is a major retirement concern among Indians. It also released its 2021 ESG Report in the quarter under review, which focuses on the company’s transition to becoming one of the most sustainable workplaces with an environment conducive to employee growth.
Finally, following the appointment of Max Life as “Sponsor” of the Pension Fund, the creation of the subsidiary is in progress and it has requested authorization from IRDAI to create a new company “PFM”. in accordance with regulatory requirements.
Mohit Talwar, Managing Director of Max Financial Services, said: “Our strong performance during 9MFY22 and Q3FY22 was driven by our growth in proprietary channels, the push in Banca channels and our continued leadership in protection sales in e-commerce. Our consistent efforts towards clients through innovative products such as the Smart Wealth Income plan in Q3 FY22 worked well for us despite the immense pressure on the whole industry due to COVID-19 supply.
He added: “Furthermore, the launch of our ESG report highlights the company’s vision and mission to become one of the most sustainable workplaces of our time, and we look forward to it. “.
Max Financial Services Limited (MFSL) is part of India’s leading business conglomerate, the Max Group. Focused on life insurance, MSFL owns and actively manages an 81.83% majority stake in Max Life Insurance, India’s largest non-bank private life insurance company.
MFSL recorded consolidated revenue of Rs. 31,288 cr. during FY21 and an after-tax profit of Rs. 560 cr.
The company is listed on the NSE and the BSE. Besides a 14.7% stake held by Analjit Singh and the sponsor family, some of the group’s other shareholders include MSI, Ward Ferry, New York Life, Baron, Vanguard, Jupiter, Blackrock and Nippon’s asset management companies. , HDFC, ICICI Prudential, Motilal. Oswal, Aditya Birla Sun Life, Mirae, DSP and Kotak.
Max Life is the sole operating subsidiary of Max Financial Services Limited. Max Life, part of the $4 billion Max Group, an Indian multi-company company, is India’s largest non-bank private life insurer and the fourth largest private life insurer.
On April 6, 2021, Axis Bank Limited, the third largest private sector bank in India, together with its subsidiaries Axis Capital Limited and Axis Securities Limited (collectively referred to as “Axis Entities”) became co-sponsors of Max Life. This was after the completion of the acquisition of a 12.99% stake collectively by the Axis entities in Max Life.
As part of the agreement, the Axis Entities have the right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, subject to regulatory approvals.
Max Life offers comprehensive protection and long-term savings solutions, through its multi-channel distribution including agencies and third-party distributors. Max Life has built its operations over nearly two decades through a needs-based sales process, a customer-centric approach to engagement and service delivery, and trained human capital. It has 358 branches across India as of March 31, 2021.
^ Excluding investment income
* The annual premium equivalent (APE) corresponds to 100% of the regular premium + 10% of the single premium.
** Before COVID impact
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