Results Highlights 9MFY23:
Max Financial completed acquisition of 5.17% stake of Max Life from MSI in Dec’22, post-acquisition Max Financial shareholding in Max Life increased to 87%
Agreements amended with Axis Bank for the right to acquire balance 7% stake sale of Max Life at Fair Market Value
New Business Premium*: Rs. 5,640 crore, Up 7%, Proprietary channels grew 19%
Embedded Value at Rs. 15,547 crore; Operating RoEV improved by 140 bps to 19.5%.
New Business Margin (NBM) at 31.8%, Up 670 bps
Value of New Business at Rs. 1,179 crore, Up 25%
Assets Under Management (AUM) at Rs. 1,18,400 Cr., Up 16%
Max Financial Services Limited (MFSL) today announced its financial results for the third quarter (Q3) and nine months (9M) of the financial year of FY23. In the 9MFY23, MFSL reported consolidated revenues of Rs. 21,497 Crore, 3% lower than previous year, due to lower investment income. Excluding investment income, the consolidated revenues^ at Rs. 15,890 Crore, grew 12%. Consolidated PAT at Rs. 399 Crore in 9MFY23, up 129%, due to lower new business strain than corresponding previous period. In Q3FY23, Consolidated Revenue at Rs. 8,898 Cr, up 28% and Consolidated PAT at Rs. 269 Cr, up 196%.
During 9MFY23, Max Life New Business Premium* grew 7% to Rs. 5,640 Cr. driven by strong growth in proprietary channels. Proprietary channels new business premiums grew by 19% year-on-year to Rs. 1,262 Crore as result contribution of Proprietary channels to total new sales increased from 28% in 9MFY22 to 34% in in 9MFY23. Further, the renewal premium income rose 16% to Rs. 10,548 Crore, taking the gross written premium Rs. 16,188 Crore, up 12% year-on-year.
Max Life achieved highest New Business Margin (NBM) of 31.8% in 9MFY23, improved by 670 bps over corresponding previous period. Further NBM expanded to 39.2% in Q3FY23, an increase of 1430 bps quarter mainly driven by higher non-participating product mix. Value of New Business (VNB) grew by 25% to Rs. 1,179 Cr in 9MFY23 and by 50% to Rs. 593 Crore in Q3FY23. Max Life policyholders cost to gross premium ratio improved from 21.4% in 9MFY22 to 20.4% in 9MFY23 due to effective cost management efforts and higher business growth. Max Life reported an Embedded Value of Rs. 15,547 crore, while the Operating Return on EV (RoEV) in 9MFY23 improved by 140 bps to 19.5%. During 9MFY23, Max focused on retirement segment led to growth of 300% in Annuity business in 9MFY23. Max Life’s assets under management (AUM) were Rs. 1,18,400 crore as on December 31, 2022 – a rise of 16% over the previous period.
Max Life Pension Fund Management Limited commenced business operations in Q2FY23, and also received PoP license which will support further growth.
Max Life has secured a new banca partnership with Ujjivan Small Finance Bank and 2 new renowned Broker partnerships in Q3FY23.
Prashant Tripathy, Managing Director, Max Life Insurance Company Limited, said, “Through the introduction of new innovative products, secular growth across proprietary channels, and a balanced product mix, we achieved a strong growth in Q3FY23. In addition to accelerate bancassurance channel growth, we are focused on continuous growth through strategic partnerships and improved market share.”
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 87% majority stake in Max Life Insurance, India’s largest non-bank, private life insurance company. The company is listed on the NSE and BSE. Besides a 11.5% holding by Analjit Singh and sponsor family, some of the other group shareholders include MSI, Ward ferry, New York Life, GIC, Baron, Vanguard, Jupiter, Blackrock, etc.
About Max Life Insurance Company
Max Life is the sole operating subsidiary of Max Financial Services Limited. Max Life – a part of Max Group, an Indian multi-business corporation – is India’s largest non-bank private life insurer and the fourth largest private life insurance company.
On April 6, 2021, Axis Bank Limited, India’s third-largest private sector bank, together with its subsidiaries Axis Capital Limited and Axis Securities Limited (collectively referred to as “Axis Entities“) became the co-promoters of Max Life. This was after completion of the acquisition of 12.99% stake collectively by the Axis Entities in Max Life. 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 a need-based sales process, a customer-centric approach to engagement and service delivery and trained human capital. It has 346 branch units across India.