Max Financial Services Ltd
(MFS), which manages a majority stake in Max Life Insurance, a private life insurance company, reported consolidated revenues of Rs4,124cr for Q3FY19, a 12% growth over the previous year. The company’s consolidated profit before tax declined marginally by 4% yoy to Rs375cr during 9MFY19 due to planned investments in FY19 towards proprietary channel growth initiatives.
Max Life’s individual adjusted first-year premium increased 21% yoy to Rs2,269cr in 9MFY19. Max Life’s renewal premium stood at Rs5,956cr, up 14% yoy. Overall, gross written premium (GWP) in 9MFY19 was Rs9,054cr, up 15% yoy.
Value of new business (VNB) during Q3FY19 was Rs466cr, up 37% yoy and the new business margin stood at 22.8%. The higher VNB was a result of higher sales of protection products as well as a higher margin in the protection business. Max Life reported an embedded value (EV) of Rs8,254cr as on December 31, 2018, with an annualized operating return on EV (RoEV) of 18.8%. AUM as at December 31, 2018, stood at Rs58,397cr, growing 16% over the previous year.
The solvency ratio of Max Life stood at 2.39x as on December 31, 2018. The market share, based on individual APE, improved 65bps to 9% during 9MFY19.