Highlights of Max Life Q1(FY23) results: • New business premiums (based on APE): Rs. 1,009 crores, up 15%.
• Gross written premium: Rs. 4,103 crores, up 18%.
• Intrinsic value at Rs. 14,152 crores; RoEV operational at 13.5%.
• Value of new business at Rs. 213 crore, up 23%.
• Total Assets Under Management (AUM): Rs. 1,07,140 Crore, up 14% Max Financial Services Limited (MFSL) today announced its financial results for the quarter (Q1) and full year FY23. In the first quarter of FY23, the company reported consolidated revenue^ of Rs. 4,003 Crore, which grew by 17% year-on-year. The company recorded a consolidated profit after tax of Rs. 68 Crore, up 91% year-on-year, due to lower tax charges than the previous year. In the first quarter of FY23, Max Life recorded a strong performance on new business premiums (on an APE basis) realizing a jump of 15% to Rs. 1,009 Crore from Rs. 875 Crore in in the period a year ago, driven by strong growth in proprietary channels. New proprietary channel business premiums increased by 32% YoY to Rs. 342 Crore as a result, proprietary channels contribution to total net sales increased from 30% to 34% in Q1FY23. In addition, renewal premium income (including band) increased by 17% to Rs. 2,619 Crore, bringing gross written premium to Rs. 4,103 Crore, a surge of 18% from the first quarter. of the previous year. Max Life grew at a 3-year CAGR of 14%, outpacing both private industry and total industry, which grew 13% and 11% respectively better new product margins across all categories and sales growth and value of new business (VNB) was Rs. 213 crores, an annual growth of 23%. Max Life’s operating expense (insured) to net premium ratio improved from 17.4% in Q1FY22 to 16.9% in Q1FY23 thanks to effective cost management efforts and stronger growth of the activity. Max Life reported an embedded value of Rs. 14,152 crore, while operating return on EV (RoEV) during Q1FY23 stood at 13.5%. Assets under management (AUM) of Max Life was Rs. 1,07,140crore as of June 30, 2022, up 14% from the previous year. Finally, following the appointment of Max Life as the “sponsor” of the pension fund, Max Life Pension Fund Management Limited was incorporated and registered with the Ministry of Corporate Affairs on February 22. The entity received a certificate of registration on April 22 and is expected to commence operations from the second quarter of FY23. Max Life has been recognized as one of the Best BFSI Brands 2022 by The Economic Times and selected as one of India’s Most Trusted Brands 2022 by WCRC international. Mr. Mohit Talwar, Managing Director of Max Financial Services, said, “Driven by proprietary growth and product innovation, we achieved healthy growth in the first quarter of FY23. Our constant efforts are to increase the many of our channels with new products and to optimize their combination. .” About Max Financial Services Limited 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.The company is listed on the NSE and BSE.In addition to a 14.7% stake held by Analjit Singh and their family of sponsors , some of the group’s other shareholders include MSI, Ward ferry, New York Life, GIC, Baron, Vanguard, Jupiter, Blackrock and the asset management companies of DSP, Nippon, HDFC, ICICI Prudential, UTI, Motilal Oswal, Canara Robeco, Sundaram, Aditya Birla Sun Life, Mirae and Kotak About Max Life Insurance Company Max Life is the sole operating subsidiary of Max Financial Services Limited Max Life – part of the $4 billion Max Group, a Indian multi-business company – is India’s largest non-banking private life insurer and the fourth largest private life insurance company. 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 collective acquisition of a 12.99% stake by the Axis Entities in Max Life was completed. 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 346 branches across India.
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