Management Discussion & Analysis - Max Financial Services Limited
GLOBAL ECONOMY*
The global economic landscape in CY 2024 presented a mixed picture, with a sustained growth of 3.2% amidst significant geopolitical complexities. While the US demonstrated robust momentum, the Euro area experienced a slowdown. Global trade dynamics were influenced by shifting geopolitical developments, trade fluctuations, inflationary pressures and disinflationary trends showing uneven progress across nations. The world economic landscape remains challenging with lingering geopolitical tensions and policy uncertainties especially around trade and tariffs. With the new regime in the US, a series of new tariff measures and countermeasures by its trading partners have been announced and implemented. The impact of these measures needs to be closely monitored. The swift escalation of trade tensions and extremely high levels of policy uncertainty could disrupt global trade, drive inflation, and slow economic growth.
Increasing debt burdens, weak investment and sluggish productivity growth, coupled with rising costs of climate change, is likely to dampen growth in emerging markets. Global headline inflation is expected to decline slightly slowly, reaching 4.3% in 2025 and 3.6% in 2026, with notable upward revisions for advanced economies and slight downward revisions for emerging market and developing economies in 2025. The US, which has triggered tariff turmoil across the globe, is expected to see its GDP growth slow to 1.8% in 2025, which is expected to decline further to 1.7% in 2026. Growth in Euro area is expected to be slow. According to IMF, in 2025 and 2026, global growth is projected at 2.8% and 3% respectively. Broader financial instability may ensue, including damage to the international monetary system.
INDIAN ECONOMY**
Amidst global uncertainty, Indian continues to remain the worlds fastest-growing major economy driven by robust domestic demand, structural reforms and strong policy support by the government. Amidst several advanced economies facing severe economic headwinds and deteriorating outlooks, India offers strong growth, stability, and long-term value attracting foreign investment. Indias success is attributable to unequivocal focus on monetary, financial, and political stability, consistent policies, and a forward-looking ecosystem fostering business confidence. The Indian economy is poised to grow from USD 3.5 trillion in 2023 to USD 5.7 trillion in 2028, overtaking Germany, becoming the worlds third-largest economy.
The Provisional Estimates of GDP by National Statistics Office suggest that GDP growth is expected at 6.5% in FY 2025, lower than 9.2% growth in FY 2024. Robust growth was aided by rural consumption following a good monsoon and higher government spending.
Inflation persisted in FY 2025 due to disruptions in the global supply chain and global commodity price volatility. The RBIs Monetary Policy Committee (MPC) shifted its stance from neutral in February to accommodative in April and reduced the repo rate by 50 basis points to 6%, with two consecutive rate cuts since May 2020. Consumer Price Index (CPI) inflation for FY 2025 is projected at 4.9% as compared to 5.4% in FY 2024. Inflation is under control, though core inflation remains sticky, necessitating careful monetary management.
The Union Budget 2025-26 was a testament to the governments strong commitment to foster economic growth and ensure India outpaces global growth - Viksit Bharat. The government announced record tax cuts of Rs.1 lakh crore in the Union Budget 2025-26 to promote consumption and boost confidence of the Indian middle class, crucial driver of the economy. With a strong focus on financial resilience and inclusive development, various policies were announced to boost private sector investments, empower MSMEs, and support infrastructure development.
Flourishing Indian rural economy, recovery in the industrial sector and resilience in the services sector aid the economic growth in an uncertain global environment. The RBI has estimated the Indian economic growth rate of 6.5% in FY 2026 buoyed by falling crude oil prices and a stable macroeconomic environment. Continued structural reforms, especially in land and labour markets, alongside investment in education, skill development, and emerging technologies like artificial intelligence and generative AI are imperative to sustain economic development. Strong push for digital transformation, financial inclusion, ease of doing business and expanding the scope of Production-Linked Incentive (PLI) scheme may provide the required boost to domestic manufacturing competitiveness.
LIFE INSURANCE INDUSTRY OVERVIEW
The Indian insurance industry is the fifth largest life insurance market in the world. While only LIC India dominated the industry at one point in time, there has been a remarkable transformation with several players offering diverse range of products currently. According to the Economic Survey 2025, the insurance market in India grew 7.7% in FY 2024 with the total insurance premium reaching 11.2 lakh crore. The insurance density saw a modest rise from USD 92 in FY 2023 to USD 95 in FY 2024 while insurance penetration rate at 3.7%, dropped by 30 basis points. However, the insurance penetration rate is significantly below the global average of 7% reflecting the humungous growth opportunity the industry holds.
Indias sustained economic development, technological advancement, demographic shifts, and increased consumer awareness about financial security through insurance, are the key growth drivers for the industry. Despite global economic uncertainty, the Indian insurance market has demonstrated resilience countering high inflation and outpacing the growth of G20 nations. The Indian insurance industry is witnessing huge interest of foreign players, with 62% share of total foreign direct investment of the services sector. The insurance sector has seen tremendous government support led by Insurance for All by 2047.
LIFE INSURANCE SECTOR PERFORMANCE IN FY20253#*
Within the industry, the life insurance premiums continued to dominate with 74.1% of the total Indian insurance sector in FY 2024 amounting to Rs.8.3 lakh crore, up 6.1% YoY. While renewal premiums accounted for 54.4% of the total premium received by the life insurers, new businesses contributed the remaining 45.6%. The gross direct premium of non-life insurance grew 7.7% to Rs.2.9 lakh crore.
PRIVATE INSURERS DRIVING LIFE INSURANCE GROWTH*
During FY 2025, individual adjusted first year premium witnessed higher growth by private players to Rs.85,020 from Rs.73,871 in FY 2024. Individual adjusted FYP for LIC remained stagnant at ~35,000 in both FY 2025 and FY 2024. The number of policies sold by LIC dropped by 12.8% to 1.78 crore in FY 2025. Private insurers recorded 5.19% growth to 92.5 lakh in FY 2025. New surrender value norms, which took effect in October 2024, impacted on the number of policies sold. However, private players promptly adapted to the revised surrender value regulations reflected in the increased volume and value of individual non-single policies. While private insurers continue to capitalise on strong individual policy sales, group business remains a drag, especially in credit life policies due to lower credit disbursements.
LIFE INSURANCE MARKET OUTLOOK
As per IRDAI estimates, the Indian insurance market is projected to grow to US$ 222 billion by 2026, growing at 7.1% CAGR over 2024-2028, much higher than the global average of 2.4%. The growth is expected to be driven by government schemes like Insurance for All by 2047, Trinity of Bima Sugam, Bima Vahak, and Bima Vistaar. The industry also can benefit by expanding into hitherto underserved and unserved tier-2 and tier-3 markets by promoting awareness and building accessibility. Adoption of technology and artificial intelligence (AI) can aid in growth if the industry through automation. AI can mine massive datasets to personalize policy offerings based on health, habits, and life stage. Real-time monitoring of health data and external factors can allow insurers to dynamically adjust underwriting standards. Automated claim verification through AI can reduce fraud and speed up settlements.
The future of the life insurance industry in India is characterized by technological innovations that leverage AI and ML, integration of wearable devices that collect real-time data, partnerships with health tech firms for comprehensive solutions and further drive towards digital insurance sales.
INSURANCE PENETRATION AND DENSITY
Life insurance penetration dropped marginally from 3% in FY 2023 to 2.8% in FY 2024. Life insurance density remained stable at US$ 70 in FY24.
GOVERNMENT AND REGULATORY INTIATIVES
The long-term vision of Insurance for All by 2047 is guiding the industry towards greater inclusivity and coverage. The industry is striving to improve both customer experience and service standards, benefiting all stakeholders. Through various projects like Bima Sugam, Bima Vahak, and Bima Vistaar, the government is relentlessly striving to widen the scope of insurance coverage.
• The life insurance sector witnessed a transformative shift with the introduction of new surrender value and exit payout norms, guaranteeing better exit payouts for policyholders who are unwilling or unable to continue paying premiums. This reform aims to make life insurance more accessible and customer-friendly, improving the financial security of policyholders even if they choose to exit the policy early. The new special surrender value rule mandates higher refunds, offering flexibility to switch plans.
• IRDAI directed insurers to increase focus on rural areas and social sector by setting a certain business commitment. At least 10% of the total lives covered should come from social sectors and to insure 10% of the total lives in each allocated Gram Panchayat (GP) from Rural sector.
• Bima-ASBA (Applications Supported by Blocked Amount), a UPI-based payment system was introduced, enabling insurance companies to block the policyholders premium amount in their bank account during the underwriting process. This ensures that the funds remain in the customers account until the policy is approved avoiding the need for likely adjustments or refunds.
• The Corporate Affairs Ministry (MCA) notified the Ind AS 117 for insurance sector that has aligned India with global practices. Further, IRDAI is actively monitoring the progress of implementation of IND AS 117 by insurance companies. In addition, to further strengthen the insurance sector, Risk Based Capital is expected to replace the current static solvency-based model with a system that ties capital requirements directly to an insurers risk profile.
With effect from March 2025, bond forwards in government securities (G-Secs) were introduced to enable insurers manage their cash flows and interest rate risk better.
• IRDAI notified Sandbox Regulations 2025 to facilitate innovation in the insurance sector while ensuring orderly development of the insurance sector and protection of interests of the policyholders. The regulations facilitate the creation of regulatory sandbox environment and relax such provisions of anyexisting regulations framed by the Authority for a limited scope and limited duration, if such a relaxation is necessary during the experiment period.
• With increasing rate of digital threats, the RBI, the Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA), have been taking a slew of measures to improve cybersecurity across financial sectors. The framework focuses on governance, technology risk management, cybersecurity operations, and third-party risk management to safeguard the industry against evolving digital threats.
CORPORATE DEVELOPMENTS
Max Financial Services Limited (MFSL), a part of the $5 billion Max Group, continues to serve as the holding company for Axis Max Life Insurance Limited (Axis Max Life), maintaining an 80.98% majority stake in Axis Max Life. During FY25, Axis Bank has received approval from Competition Commission of India (CCI) on April 2, 2024, for equity capital infusion in Axis Max Life. Post receipt of all regulatory approvals, Axis Bank subscribed to 14,25,79,161 equity shares of Axis Max Life on April 17, 2024, on a preferential basis at Rs.113.06/- per equity share including a share premium of Rs.103.06/- per equity share, being the fair market value of shares determined using the discounted cash flow method, for an aggregate investment of Rs.1612 Crores. On completion of the equity infusion, Axis Entities collectively hold 19.02% of the equity share capital of Axis Max Life. In addition, Axis Entities would have the right to purchase 0.98% of the equity share capital of Axis Max Life from the MFSL.
In FY2025, the Company refreshed its brand, transitioning from Max Life Insurance to Axis Max Life Insurance with change in its corporate name to Axis Max Life Insurance Limited. The strategic move represents the integration of two trusted names in the financial services sector. The new identity draws strength from the legacy of two trusted names in financial services, allowing Axis Max Life to deliver #DoubleBharosa. The new entity has wider presence beyond Metro and Tier- 1 cities, where its concentration and brand equity have been very strong. The association aided in deepening presence, especially in smaller cities, while carrying forward Max Lifes legacy, expertise, and leveraging the trust and recognition associated with Axis Bank.
BUSINESS PERFORMANCE
During FY25, MFSL reported consolidated revenues of Rs.46,497 crores, excluding Investment Income consolidated revenues grew 12%. The Company reported a consolidated Profit after Tax of Rs.403 crores, which grew 3% compared to the previous year due to a shift in product mix towards unit linked products.
In FY25, Axis Max Life demonstrated strong performance with an individual business growth of 20% against the private industry growth of 15%, positioning it as the fastest growing among the top 10 private life insurers in the last 2 years. The total business premium experienced a growth of 11%, continuing the upward trend from the previous fiscal year. Similarly, the renewal of premium income saw a growth of 14%, contributing to the overall rise in gross written premium, which reached Rs.33,223 crore, year-on-year growth of 13%. Furthermore, Axis Max Life continued to generate sustained profitability. The pre-tax shareholders profit for FY25 stood at Rs.448 crore, growth of 20%.
Additionally, Axis Max Life continued to reinforce its capital base to support its growth initiatives and ensure long-term sustainability. The total sum assured (individual and group) witnessed a significant increase of 23% from Rs.17.8 lakh crore in FY24 to Rs.21.9 lakh crore in FY25, demonstrating the growing confidence of customers in Axis Max Lifes insurance products and Axis Max Lifes ability to meet their protection needs.
Meanwhile, Axis Max Life demonstrated robust performance during FY25, building upon the foundation laid in FY24. Total new business premium, comprising First Year Premium and Single Premium, witnessed 10% growth, reaching Rs.12,174 crore. Adjusted individual first- year premiums witnessed a 20% growth, amounting to Rs.8,329 crore. Additionally, renewal premium income, including group premiums, surged by 14% to Rs.21,049 crore, driving gross written premium to Rs.33,223 crore, a significant 13% increase over the preceding financial year. Notably, Axis Max Life achieved a post-tax shareholders profit of Rs.406 crore in FY25, 13% higher than the previous financial year. Furthermore, the net worth increased from Rs.3,919 crore in FY24 to Rs.5,960 crore in FY25, marking a notable 52% growth, primarily driven by profit generation and capital infusion from Axis Bank Limited.
The performance of proprietary channels remained robust, with a staggering 26% increase in new business premium to Rs.3,723 crore. This growth was driven by a strong performance across all channels, including online (e-commerce), agency, and direct selling teams. The contribution of proprietary channels to individual sales surged from 40% in FY24 to 42% in FY25. Axis Max Life maintained a leadership position in overall E-commerce business in both online Protection and online Savings with growth of 50% during FY25. The Bancassurance channel grew by 12% while Group Credit Life business grew by 6%. The new business growth was fueled by strong growth in retail Protection & Health and ULIP of 35% and 43% respectively. Additionally, Axis Max Life has successfully on-boarded 44 new partners in FY25, including 3 Banca Partners.
Axis Max Lifes assets under management (AUM) crossed Rs.1.75 lakh crore to Rs.1,75,072 crores as of March 31, 2025, reflecting a notable 16% increase over the previous year. Axis Max Lifes Solvency Margin as of March 25 stood at 201%.
In terms of profitability metrics, Axis Max Life achieved New Business Margin (NBM) of 24% in FY25 vs 26.5% in previous year, lower by ~250 bps due to higher proportion of ULIP and impact of surrender regulations. Axis Max Life undertook various margin enhancing measures such as attaching riders, launching high sum assured products on ULIP designs in FY25. Value of New Business (VNB) of Rs.2,107 crores, grew 7% in FY25. Axis Max Life reported an Embedded Value of Rs.25,192 crores grows 29% year-on-year with an Operating Return on Embedded Value (RoEV) at 19.1%.
Axis Max Lifes excellence in business practices, customer service, and focus on people continued to be recognized by various Indian and foreign business bodies, reinforcing its position as a leader in the insurance industry.
HUMAN RESOURCES
Axis Max Life continued to focus on building a strong and diverse workforce to position itself well for sustainable growth in an evolving market. Axis Max Life has been honoured with the Rs.Laureate distinction by the Great Place to Work? (GPTW?) Institute, an accolade reserved for organizations that have been recognized as one of Indias Rs.Best Companies to Work For for 10 consecutive years. Additionally, Axis Max Life has been ranked 28th in the prestigious Rs.100 Best Companies to Work for in India list and placed among the Top 25 in Rs.Indias Best Workplaces™ in BFSI in the 2024 GPTW? study.
People are the bedrock of Axis Max Lifes success. Building a progressive organisation driven by our purpose of Rs.Inspiring people to increase the value of their life, remains our North Star. Diversity, equity and inclusion are at the heart of our operations, and we had encouraging results this year deploying enabling programmes and initiatives achieving a diversity ratio of 28.8%. We will continue to strive in our journey to create a workplace that is diverse and inclusive, where every individual can thrive and grow.
ENHANCING CUSTOMER EXPERIENCE
Prompt settlement of death claims is the most important promise a life insurer makes while selling a life insurance policy. A timely and hassle-free claim settlement is the most important moment of truth for the life insured and life insurer relationship. We endeavour to keep promises and keep dreams alive at the time of the customers utmost need by paying death claims within one day for eligible policies.
Axis Max Life continues to uphold this promise by ensuring swift and hassle-free claim processing, with eligible death claims settled within one working day. In FY 2025, the Company achieved an all-time high individual death claims paid ratio of 99.70%, underscoring its dedication to trust, reliability, and customer-centric service. This milestone aligns with the brands commitment reflected in the Rs.India Ke Bharose Ka Number campaign, and highlights Axis Max Lifes unwavering focus on delivering on its promises when it matters most.
During the year, Axis Max Life paid a total of 20,165 death claims worth Rs.1,452 crore. Since inception, Axis Max Life has paid Rs.10,131 crore towards death claims on 2,22,995 policies. The InstaClaim™ initiative for vintage policyholders (policies in force for at least three continuous years) aimed at providing death claim payment within one day, is being witnessing good progress. Nearly 55% of claims are settled within a day, with strong on-going efforts for further improvement.
Long-term customer retention is of critical importance in creating a win-win for customers, distributors, and Axis Max Life. Ongoing improvements in our structural solutions and services to improve persistence are one of the key focus areas for Axis Max Life. In FY25, the 13th- month persistency of Axis Max Life Insurance was at 88% (Premium) and the 61st-month persistency stood at 53% (Premium). Axis Max Life has made considerable progress in improving grievance handling, with GIR reducing to 38 in FY25, down from 44 in FY24.
In FY25, Axis Max Life also tracked performance on customer engagement and satisfaction through Net Promoter Score (NPS) across key customer touchpoints and at the overall Axis Max Life relationship level, reflecting the difference between promoters and detractors of an Axis Max Life. By doing so, Axis Max Life has generated greater insights into what delights or detracts customers and recommended our solutions and further implemented corrective actions to ensure that we meet our customers expectations. During FY25, your Company witnessed an improvement of 6 points in the NPS scores to 62 from 56 in FY24. Further, our transactional NPS reflecting the satisfaction of our customers at key touchpoints increased from 74 in FY24 to 78 in FY25, another reflection of your Companys obsession to better serve its customers. Our Relationship NPS improved significantly by 6 points to 50 in FY25 from 44 in FY24 with movement in both New and Vintage customer base.
FUTURE OUTLOOK
Focused on robust future growth, Axis Max Life has devised a three-year strategy. Axis Max Life reviews progress regularly to ensure the strategy is on track. In FY 2022, after Axis Bank joined as a co-promoter, Axis Max Life has chalked out a new growth plan to effectively leverage the strengths of the third-largest private bank in India while maintaining its leadership in the life insurance industry. Axis Max Life aspires to be:
• leader in online protection and savings with target to increase sales by 7- 9 times in 5 years
• among top 3 in offline proprietary distribution with 2.5 times sales in 5 years
• among top 3 in protection and health with 3-4 times sales in 5 years
• among top 3 providers of holistic retirement offering with 8-9 times annuity sales in 5 years
Axis Max Life is working on improvising on its growth objectives and strategic framework, based on an indepth study of the market landscape and opportunities. The aim remains to achieve consistent and profitable growth. The Companys strategy continues to be anchored around 7 key pillars - consistent market outperformance, leveraging synergies with Axis Bank, augmenting distribution through addition of new partners, building new engines of growth, enhancing digital and technological capabilities, developing better people capabilities and enhancing customer centricity across the Value Chain.
Both MFSL and Axis Max Life are dedicated to ensuring the financial security of the broader community by leading with agility and transitioning business processes to digital platforms to swiftly deliver life insurance solutions and services to customers. The industrys shift towards digital adoption is being driven by consumer receptiveness, demonstrating their preference for engaging through online channels.
ECONOMIC OVERVIEW
Global Economy*
Global growth was stable yet underwhelming through 2024 amidst continued geo-political tensions. Varied growth across countries was seen with robust momentum in the US in contrast to slower growth in the Euro and Asian regions. Shifting geopolitical developments, trade fluctuations and inflationary trends shaped the global economy. Global GDP grew 3.3% in 2024 with continued disinflation. With the new regime in US, a series of new tariff measures and countermeasures by its trading partners have been announced and implemented. The impact of these measures needs to be closely monitored. The swift escalation of trade tensions and extremely high levels of policy uncertainty could disrupt global trade, drive inflation, and slow economic growth.
Increasing debt burdens, weak investment and sluggish productivity growth, coupled with rising costs of climate change is likely to dampen growth in emerging markets. Global headline inflation is expected to decline slightly slowly, reaching 4.3% in 2025 and 3.6% in 2026, with notable upward revisions for advanced economies and slight downward revisions for emerging market and developing economies in 2025. The US, which has triggered the tariff turmoil across the globe, is expected to see its GDP growth slow to 1.8% in 2025, which is expected to decline further to 1.7% in 2026. Growth in Euro area is expected to be slow. According to IMF, in 2025 and 2026, global growth is projected at 2.8% and 3% respectively. Broader financial instability may ensue, including damage to the international monetary system.
Indian Economy**
Amidst global uncertainty, Indian continues to remain the worlds fastest-growing major economy driven by robust domestic demand, structural reforms and strong policy support by the government. Amidst several advanced economies facing severe economic headwinds and deteriorating outlooks, India offers strong growth, stability, and long-term value attracting foreign investment. Indias success is attributable to unequivocal focus on monetary, financial, and political stability, consistent policies, and a forward-looking ecosystem fostering business confidence. The Indian economy is poised to grow from USD 3.5 trillion in 2023 to USD 5.7 trillion in 2028, overtaking Germany, becoming the worlds third-largest economy.
The Provisional Estimates of GDP by National Statistics Office suggest that GDP growth is expected at 6.5% in FY 2025, lower than 9.2% growth in FY 2024. Robust growth were aided by rural consumption following a good monsoon and higher government spending. Inflation persisted in FY 2025 due to disruptions in global supply chain and global commodity price volatility. The RBIs Monetary Policy Committee (MPC) shifted its stance from neutral in February to accommodative in April, and reduced the repo rate by 50 basis points to 6%, with two consecutive rate cuts since May 2020. Consumer Price Index (CPI) inflation for FY 2025 is projected at 4.9% as compared to 5.4% in FY 2024. Inflation is under control, though core inflation remains sticky, necessitating careful monetary management.
In April 2025, Indias foreign exchange reserves climbed the highest-level since November 2024, to USD 686.14 billion, exhibiting resilience amid global uncertainties. Indias financial markets have developed into a dynamic and resilient force to fuel economic growth with an almost doubling of the foreign exchange market from USD 32 billion in 2020 to USD 60 billion in 2024. During the same period, the average daily volumes in the overnight money markets also nearly doubled from Rs. 3 lakh crore in 2020 to Rs. 5.4 lakh crore, with surge in average daily volumes in the government securities (G-secs) markets to Rs. 66,000 crore.
The Union Budget 2025-26 was a testament to the governments strong commitment to foster economic growth and ensure India outpaces global growth - Viksit Bharat. The government announced record tax cuts of Rs. 1 lakh crore in the Union Budget 2025-26 to promote consumption and boost confidence of the Indian middle class, crucial driver of the economy. With a strong focus on financial resilience and inclusive development, various policies were announced to boost private sector investments, empower MSMEs, and support infrastructure development.
Flourishing Indian rural economy, recovery in the industrial sector and resilience in the services sector aid the economic growth in an uncertain global environment. The RBI has estimated the Indian economic growth rate of 6.5% in FY 2026 buoyed by falling crude oil prices and a stable macroeconomic environment. Continued structural reforms, especially in land and labour markets, alongside investment in education, skill development, and emerging technologies like artificial intelligence and generative AI are imperative to sustain economic development. Strong push for digital transformation, financial inclusion, ease of doing business and expanding the scope of Production-Linked Incentive (PLI) scheme may provide the required boost to domestic manufacturing competitiveness.
INDUSTRY OVERVIEW Life Insurance Industry in India
The Indian insurance industry is the fifth largest life insurance market in the world. While only LIC India dominated the industry at one point in time, there has been a remarkable transformation with several players offering diverse range of products currently. According to the Economic Survey 2025, the insurance market in India grew 7.7% in FY 2024 with the total insurance premium reaching Rs.11.2 lakh crore. The insurance density saw a modest rise from USD 92 in FY 2023 to USD 95 in FY 2024 while insurance penetration rate at 3.7%, dropped by 30 basis points. However, the insurance penetration rate is significantly below the global average of 7% reflecting the humungous growth opportunity the industry holds.
Indias sustained economic development, technological advancement, demographic shifts, and increased consumer awareness about financial security through insurance, are the key growth drivers for the industry. Despite global economic uncertainty, the Indian insurance market has demonstrated resilience countering high inflation, and outpacing the growth of G20 nations. The Indian insurance industry is witnessing huge interest of foreign players, with 62% share of total foreign direct investment of the services sector. The insurance sector has seen tremendous government support led by Rs.Insurance for All by 2047.
Life insurance Sector Performance in FY2025#*
Within the industry, the life insurance premiums continued to dominate with 74.1% of the total Indian insurance sector in FY 2024 amounting to Rs.8.3 lakh crore, up 6.1% YoY. While renewal premiums accounted for 54.4% of the total premium received by the life insurers, new businesses contributed the remaining 45.6%. The gross direct premium of non-life insurance grew 7.7% to Rs.2.9 lakh crore.
Private Insurers Driving Life Insurance Industry Growth*
During FY 2025, individual adjusted first year premium witnessed higher growth by private players to Rs.85,020 from Rs.73,871 in FY 2024. Individual adjusted FYP for LIC remained stagnant at ~35,000 in both FY 2025 and FY 2024. The number of policies sold by LIC dropped by 12.8% to 1.78 crore in FY 2025. Private insurers recorded 5.19% growth to 92.5 lakh in FY 2025. New surrender value norms, which took effect in October 2024, impacted the number of policies sold. However, private players promptly adapted to the revised surrender value regulations reflected in the increased volume and value of individual non-single policies. While private insurers continue to capitalise on strong individual policy sales, group business remains a drag, especially in credit life policies due to lower credit disbursements.
Life Insurance Market Forecast*
As per IRDAI estimates, the Indian insurance market is projected to grow to US$ 222 billion by 2026. The growth is expected to be driven by government schemes like Insurance for All by 2047, Trinity of Bima Sugam, Bima Vahak, and Bima Vistaar. The industry also can benefit by expanding into hitherto underserved and unserved tier-2 and tier-3 markets by promoting awareness and building accessibility. Adoption of technology and artificial intelligence (AI), can aid in growth if the industry through automation. AI can mine massive datasets to personalize policy offerings based on health, habits, and life stage. Real-time monitoring of health data and external factors can allow insurers to dynamically adjust underwriting standards. Automated claim verification through AI can reduce fraud and speed up settlements.
The future of the life insurance industry in India is characterised by technological innovations that leverage AI and ML, integration of wearable devices that collect real-time data, partnerships with health tech firms for comprehensive solutions and further drive towards digital insurance sales.
GROWTH DRIVERS
1. Robust GDP growth**
1.1. Per capita GDP growing ahead of the global average
Indias per capita GDP grew at 5.6% CAGR between CY 2018 and CY 2024 higher than the global per capita GDP CAGR of 3.2% and that of Emerging Markets and Developing Asia at 4.5%. During the same period, China, the US and the UK grew at 4.9%, 5.1% and 2.8% respectively. Going forward the same outperformance is expected to continue with India likely to post ~6.5% CAGR growth over CY 2024-2028, almost twice the world average growth.
Country |
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
India |
6.8 | 6.5 | 3.8 | (5.8) | 9.7 | 7.6 | 9.2 | 6.5 | 6.2 | 6.3 | 6.5 | 6.5 | 6.5 | 6.5 |
World average |
3.8 | 3.7 | 2.9 | (2.7) | 6.6 | 3.6 | 3.5 | 3.3 | 2.8 | 3.0 | 3.2 | 3.2 | 3.2 | 3.1 |
Canada |
3.0 | 2.7 | 1.9 | (5.0) | 6.0 | 4.2 | 1.5 | 1.5 | 1.4 | 1.6 | 1.7 | 1.6 | 1.6 | 1.5 |
France |
2.3 | 1.6 | 2.1 | (7.6) | 6.8 | 2.6 | 1.1 | 1.1 | 0.6 | 1.0 | 1.2 | 1.3 | 1.2 | 1.2 |
Germany |
2.7 | 1.1 | 1.0 | (4.1) | 3.7 | 1.4 | (0.3) | (0.2) | (0.1) | 0.9 | 1.5 | 1.2 | 1.0 | 0.7 |
Italy |
1.6 | 0.8 | 0.4 | (8.9) | 8.9 | 4.8 | 0.7 | 0.7 | 0.4 | 0.8 | 0.6 | 0.7 | 0.7 | 0.7 |
Japan |
1.7 | 0.6 | (0.4) | (4.2) | 2.7 | 0.9 | 1.5 | 0.1 | 0.6 | 0.6 | 0.6 | 0.6 | 0.5 | 0.5 |
United Kingdom |
2.7 | 1.4 | 1.6 | (10.3) | 8.6 | 4.8 | 0.4 | 1.1 | 1.1 | 1.4 | 1.5 | 1.5 | 1.4 | 1.4 |
United States |
2.5 | 3.0 | 2.6 | (2.2) | 6.1 | 2.5 | 2.9 | 2.8 | 1.8 | 1.7 | 2.0 | 2.1 | 2.1 | 2.1 |
Source: International Monetary Fund, World Economic Outlook Database, April 2025
Steady growth in PCFE and share of health expenditure in total PCFE*
Private Final Consumption Expenditure (PFCE) at constant prices grew at 6.1% CAGR between FY 2012 and FY 2023, led by healthy monsoon, wage revisions due to the implementation of the Seventh Central Pay Commissions (CPC) recommendations, benign interest rates, growing middle age population
and low inflation. In FY 2024, PCFE increased to Rs.99,608 billion from Rs.93,849 billion in FY 2023, up 5.6%.
The share of health expenditure in total PFCE has been consistently increasing from 3.7% in FY 2012 to 4.7% in FY 2023. In absolute terms, health expenditure increased at ~8.3% CAGR from Rs.1,813 billion in FY 2012 to Rs.4,354 billion in FY 2023.
1.2. Decline in poverty levels*
The proportion of population living on Rs.125,000 per annum or less has witnessed steady decline from ~16% in FY 2016 to ~14% in FY 2021. Conversely, the proportion of those in the middle- and high-income groups increased from 85% in FY16 to ~86% in FY 2021, expected to reach ~95% by FY 2031, supported by growth in per capita income.
1.3. Increasing working-age population*
Indias population grew to ~1.4 billion in 2023 as per World Population Prospects 2024. The population is expected to remain the worlds largest throughout the century and will likely reach its peak in the early 2060s at about 1.7 billion. With improving life expectancy, the demographic of the country is also witnessing a positive change.
Life expectancy (at birth and infant mortality rate: India vs others
The share of population aged 25-49 years (working age) accounted for ~37% in CY23 and is projected to increase to ~38% in CY30, indicating a strong potential for healthcare spending, and disposable income. Additionally, the young population aged below 25 years is projected to be ~39% by CY30, expected to contribute to the economic growth.
1.4. Steady rise in Urbanization*
Indian urban population has seen steady rise from 33% in CY 2015 to 35% in CY 2020 and expected to continue to grow nearly 40% by CY 2030, according to a UN report on urbanisation. The growth is expected to be driven by robust economic growth and the search for better opportunities in the cities for job, education and quality of life.
1.5. Role of Life Insurance in Financial Inclusion
As the fifth largest life insurance market in the world, the Indian insurance industry, has witnessed major transformation from being a single player industry to comprising various players offering diverse range of products. There has been massive development with significant contribution to the economy. Economic development, technological advancement, demographic shifts, and increased consumer awareness about financial security through insurance, especially post COVID-19 pandemic have played a significant role in this journey. Offering protection against risks and unforeseen events, insurance aids individuals and families in the event of accidents, illnesses, or loss of income. In addition, various insurance schemes promote savings and wealth accumulation.
2. Insurance Gap and Market Potential
2.1. Life Insurance Penetration and Density#*
Life insurance penetration dropped marginally from 3% in FY 2023 to 2.8% in FY 2024. Life insurance density remained stable at US$ 70 in FY24.
3. Higher longevity, retirement and financial security
Financial security post-retirement remains a significant challenge in India. The proportion of elderly population in the total population in the country, comprising of people aged 70 years and above, was estimated at 4.1% in CY 2023 and is expected to grow to 5.32% by CY 2030. With pension assets constituting a mere 9.29% of the nations GDP as of CY 2020, India lags significantly behind developed countries such as the United States and Japan, where pension assets are substantially higher.
3.1. Underdeveloped Pension Market*
In 2020, pension assets in OECD countries (Organisation for Economic Co-operation and Development) averaged over 63% of GDP, with some nations exceeding 100%. In contrast, Indias pension assets as a percentage of GDP remains disproportionately low at ~9%, reflecting limited access to formal pension schemes and a general lack of awareness about their importance. The Economic Survey highlights that only a small fraction of Indias workforce is covered under formal retirement savings plans, reflecting a wide gap in retirement savings.
3.2.National Pension System
The National Pension System (NPS) is a voluntary and contributory pension system introduced by the government of India for individuals in the unorganised sector and those not covered under EPF. The NPS allows individuals to contribute to their pension fund during their working years and provides a corpus for their retirement.
4. Household Savings#
According to the RBI, there was an uptick in the gross financial savings of Indian households from 10.7% of Gross National Domestic Income (GNDI) in FY 2023 to 11.2% in FY 2024, which resulted in an improved net financial savings. Indias household net financial savings rebounded to 5.1% GNDI in FY 2024, after falling to a multi-year low of 4.9% in the previous year. The rebound comes amid a favourable economic outlook and moderating inflation.
5. Digital Adoption
Digital platforms, automation and the use of AI are revolutionizing the insurance sector, aiding customers to compare and buy policies and enhancing the decision-making process. Digitalisation has also resulted in more efficient and easy processing of claims leading to higher client satisfaction and increased insurance accessibility to all sections of the population.
6. Government and Regulatory Initiatives 6.1. Insurance for all by 2047
The long-term vision of Rs.Insurance for All by 2047 is guiding the industry towards greater inclusivity and coverage. The industry is striving to improve both customer experience and service standards, benefiting all stakeholders. Through various projects like Bima Sugam, Bima Vahak, and Bima Vistaar, the government is relentlessly striving to widen the scope of insurance coverage.
• The life insurance sector witnessed a transformative shift with the introduction of new surrender value and exit payout norms, guaranteeing better exit payouts for policyholders who are unwilling or unable to continue paying premiums. This reform aims to make life insurance more accessible and customer-friendly, improving the financial security of policyholders even if they choose to exit the policy early. The new special surrender value rule mandates higher refunds, offering flexibility to switch plans.
• IRDAI directed insurers to increase focus on rural areas and social sector by setting a certain business commitment. At least 10% of the total lives covered should come from social sectors and to insure 10% of the total lives in each allocated Gram Panchayat (GP) from Rural sector.
• Bima-ASBA (Applications Supported by Blocked Amount), a UPI-based payment system was introduced, enabling insurance companies to block the policyholders premium amount in their bank account during the underwriting process. This ensures that the funds remain in the customers account until the policy is approved avoiding the need for likely adjustments or refunds.
• The Corporate Affairs Ministry (MCA) notified the Ind AS 117 for insurance sector that has aligned India with global practices. Further, IRDAI is actively monitoring the progress of implementation of IND AS 117 by insurance companies. In addition, to further strengthen the insurance sector, Risk Based Capital is expected to replace the current static solvency-based model with a system that ties capital requirements directly to an insurers risk profile.
With effect from March 2025, bond forwards in government securities (G-Secs) were introduced to enable insurers manage their cash flows and interest rate risk better.
• IRDAI notified Sandbox Regulations 2025 to facilitate innovation in the insurance sector while ensuring orderly development of the insurance sector and protection of interests of the policyholders. The regulations facilitate the creation of regulatory sandbox environment and relax such provisions of any existing regulations framed by the Authority for a limited scope and limited duration, if such a relaxation is necessary during the experiment period.
• With increasing rate of digital threats, the RBI, the Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA), have been taking a slew of measures to improve cybersecurity across financial sectors. The framework focuses on governance, technology risk management, cybersecurity operations, and third-party risk management to safeguard the industry against evolving digital threats.
RISKS AND CONCERNS
While the growth prospects for the insurance industry are seeing strong momentum, the sector is grappling with certain challenges, including evolving customer expectations, climate change, and geopolitical uncertainties. Increasing life expectancy and a growing geriatric population, present underwriting risks, while concerns about mis-selling, delayed claims, and cybersecurity threats are gaining importance. Insurers are tackling these risks through digitisation and simplification, strengthening their risk management frameworks and streamlining processes.
In response to increasing digital threats, the Reserve Bank of India, alongside the Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA), is enhancing cybersecurity across financial sectors. The framework focuses on governance, technology risk management, cybersecurity operations, and third-party risk management to safeguard the industry against evolving digital threats.
IRDAI also undertakes changes in regulations depending on the evolving macro environment requiring insurers to adapt to new compliances promptly and efficiently. This may add to the complexities amidst an already competitive life insurance market.
BUSINESS OVERVIEW
In FY 2025, Axis Max Life Insurance (the Company) transitioned from Max Life Insurance with change in its corporate name representing the integration of two trusted names in the financial services sector. The transition has led to strengthening of brand equity with a wider reach beyond Metro and Tier-1 cities to smaller cities. The Company offers a variety of insurance plans including savings, protection, health and retirement. The Company continuously strives to create solutions that make life insurance plans easy, affordable, and suitable for every stage of life.
The Company continues to focus on innovation and customer-centricity to strengthen its market positioning. During the year, focus on digitalization led to significant enhancement in operational efficiency. Digitalization and strengthening of AI capabilities are giving a new direction to cross-sell propensity campaigns, and also collection of renewal via human-less alternate collection channels. The Company has established a vast pan India diverse multi-channel distribution network. While the proprietary channel remains at the core, agency channel, direct employee sales force, new-age e-commerce online channel, efficient banca distribution, and addition of new relationships have further strengthened the distribution network.
The Company aims to continue to lead the online life insurance market, both protection and savings categories and establish strong leadership in protection and health segments. While leveraging technology, the Company continues to focus on its product and services assortment, strengthen underwriting capabilities and augment distribution network. The Company continues to keep a close eye on macroeconomic trends, industry dynamics and regulatory developments, to effectively strategize and stay ahead of the competition. Its market share in terms of new business premiums among private life insurers stood at 9.8% during FY 2025 as against 9.4% during FY 2024.
CORPORATE DEVELOPMENTS
Axis Max Life Insurance Limited (Axis Max Life), is a subsidiary of Max Financial Services Limited (MFSL, a part of the $4-Bn Max Group) which holds 80.98% majority stake in the Company. Axis Bank along with its subsidiaries (Axis Capital Limited and Axis Securities Limited) holds 19.02% stake in Axis Max Life. In FY 2025, branding was refreshed transitioning from Max Life Insurance to Axis Max Life Insurance with change in its corporate name to Axis Max Life Insurance Limited. The rebranding allows to leverage the strong brand equity of both the trusted entities who hold a dominant place in the financial services sector. The new entity has wider presence, extending beyond its stronghold in metro and tier-1 cities.
Reiterating Axis Banks commitment towards building a stronger franchise, it infused fresh capital in Axis Max Life during the year, aimed at aiding future growth endeavours, augment its capital position and to improve solvency margins.
PREMIUM GROWTH
During FY 2025, Axis Max Life demonstrated strong performance in premium growth with total new business premium (NBP) increasing 10% year-on-year, reaching Rs.12,174 crore. Robust demand across individual policies, effective customer engagement and innovative market strategies were the major drivers of growth. Renewal premium income, including group premiums, grew 14%, contributing significantly to the overall Gross Written Premium (GWP) increase of 13% year-on-year. These achievements exhibit Axis Max Lifes competitive edge.
PROFITABILITY AND FINANCIAL METRICS
Axis Max Life has delivered a solid financial performance in FY 2025, with a post-tax shareholders profit of Rs.406 crore. The Companys Value of New Business (VNB) rose by 7% to Rs.2,107 crore, supported by a strong 5-year CAGR of 19%. Notably, the New Business Margin (NBM) remained healthy at 24%, indicating continued focus on capital efficiency and cost discipline.
These figures reflect the companys ability to balance growth with profitability, reinforcing its position as a well- managed and resilient player in the life insurance sector. The consistent improvement in key metrics points to a sustainable value creation strategy for both shareholders and broader stakeholders.
SUM ASSURED AND ASSET MANAGEMENT
During FY 2025, the Company remained committed to ascertain customer protection and asset growth. The sum assured covering both individual and group policies increased significantly by 23% to Rs.21.9 lakh crore. This is a testament to growing customer confidence influenced by the Companys strategy to satisfy diverse protection needs. Assets Under Management (AUM) grew 16%, reaching Rs.1,75,072 crore, led by prudent financial management and strategic investments. This further strengthens the Companys leadership in providing comprehensive insurance solutions and its market standing as a trusted custodian of assets.
CAPITAL BASE AND SOLVENCY
Axis Max Life strengthened its capital base and financial resilience during FY 2025. Axis Max Lifes Solvency Margin increased from 172% to 201% as of March 2025, significantly more than the regulatory requirements. This was primarily driven by capital infusion from Axis Bank Limited and raising of sub-debt during the year. The robust capital enhancement is the result of Axis Max Lifes unwavering commitment to maintaining robust solvency levels. The Company has managed to ensure financial stability despite market volatility.
DISTRIBUTION CHANNELS AND OPERATIONAL EXCELLENCE
Axis Max Life continued to widen its distribution reach in FY 2025. Proprietary channels posted 26% increase in new business premium (APE) to reach Rs.3,723 crore. This growth is mainly attributed to balanced performance across online, agency, and direct sales teams. The addition of new partners in bancassurance and broker relationships aided in effective distribution expansion. The Company continued to focus on customer engagement and employee development to enhance operational efficiency.
CLAIM SETTLEMENT
Timely settlement of death claims is one of the most critical commitments a life insurer makes to its policyholders. Axis Max Life continues to uphold this promise by ensuring swift and hassle-free claim processing, with eligible death claims settled within one working day.
In FY 2025, the Company achieved an all-time high individual death claims paid ratio of 99.70%, underscoring its dedication to trust, reliability, and customer-centric service. This milestone aligns with the brands commitment reflected in the Rs.India Ke Bharose Ka Number campaign, and highlights Axis Max Lifes unwavering focus on delivering on its promises when it matters most.
During the year, Axis Max Life paid a total of 20,165 death claims worth Rs. 1,452.11 crore. Since inception, the Company has paid Rs. 10,131 crore towards death claims on 2,22,995 policies. The InstaClaim™ initiative for vintage policyholders (policies in force for at least three continuous years) aimed at providing death claim payment within one day, is being witnessing good progress. Nearly 55% of claims are settled within a day, with strong on-going efforts for further improvement.
DELIVERING CONSISTENT PERFORMANCE Embedded Value
| (Rs. in Crores) | ||||
FY 2021 |
FY 2022 | FY 2023 | FY 2024 | FY 2025 |
11,834 |
14,174 | 16,263 | 19,494 | 25,192 |
Axis Max Lifes Embedded Value has demonstrated strong and sustained growth, underpinned by a 19% CAGR in Value of New Business (VNB) and an expansion in New Business Margins from 21.6% in FY 2020 to 24% in FY 2025. This performance reflects the Companys ability to generate future profits from its in-force business and highlights the fundamental strength of its business model. The consistent improvement in profitability and capital efficiency underscores the companys strategic focus on value-accretive growth, ensuring long-term value creation for shareholders.
Gross written premium
| (Rs. in Crore) | ||||
FY 2021 |
FY 2022 | FY 2023 | FY 2024 | FY 2025 |
19,018 |
22,414 | 25,342 | 29,529 | 33,223 |
The overall revenue-generating capability of the Company is assessed by GWP.
Steady progress in GWP is the result of robust growth in customer base and success of product in the market. This growth encompassing the total premium income from both new and existing policies, is a reflection of enhancing market penetration and strengthening brand equity.
New Business Premium
| (Rs. in Crore) | ||||
FY 2021 |
FY 2022 | FY 2023 | FY 2024 | FY 2025 |
6,826 |
7,905 | 8,960 | 11,023 | 12,174 |
The Companys Individual New Business has achieved 15% CAGR during the 5-years, ahead of the total life insurance industrys growth at 10% CAGR.
This growth is attributed mainly to robust sales performance and growth in new customers led by innovative marketing and sales strategies, and diverse product assortment.
Renewal Premium
FY 2021 |
FY 2022 | FY 2023 | FY 2024 | FY 2025 |
12,192 |
14,509 | 16,382 | 18,506 | 21,049 |
The Company has witnessed robust growth in renewal premiums attributable to high customer retention and continued trust in product offering. This matrix is indicative of the customer satisfaction and loyalty the Company enjoys and signal robust long-term revenue stability. Steady income-flow due to consistent growth in renewal premium secures the future financial health.
PERSISTENCY
The Companys persistency ratio (regular premium/ limited premium) has witnessed robust performance. In FY 2025, the 13th month persistency ratio was maintained at 87% similar to that in FY 2024, while 61st month persistence grew to 53% from 52% in FY 2024.
Assets under management
| (Rs. in Crore) | ||||
FY 2021 |
FY 2022 | FY 2023 | FY 2024 | FY 2025 |
90,407 |
107,510 | 122,857 | 150,836 | 175,072 |
The growth in Assets Under Management (AUM) reflects robust growth in investment income earned and renewal premiums. AUM has reached 1.75 lakh crore, marking a robust 14% CAGR over the past five years. This strong trajectory highlights the companys effective investment strategies and consistent premium inflows, underscoring its commitment to long-term value creation.
Total sum assured in force
| (Rs. in Crore) | ||||
FY 2021 |
FY 2022 | FY 2023 | FY 2024 | FY 2025 |
10,87,987 |
11,74,515 | 13,97,142 | 1,779,409 | 2,191,857 |
CUSTOMER RETENTION
Customer retention over the longer term is crucial for all stakeholders including customers, distributors, and the Company. The Company continues to focus on improving structural solutions and services which in turn will improve persistency. In FY 2025, the 13th-month persistency of Axis Max Life was at 87.3% (Premium) and the 61st-month persistency stood at 53.0% (Cumulative, Premium).
NET PROMOTER SCORE
The Net Promoter Score (NPS) across key customer touchpoints and at the overall company relationship level enables Axis Max Life to track customer engagement and satisfaction. This score provide significant insights into customer satisfaction and areas for improvement by reflecting the delta between promoters and detractors of the Company. During FY2025, Axis Max Life saw 6 points improvement in the NPS scores, increasing to 62 from 56 in FY 2024. The transactional NPS, a measure of satisfaction at key touchpoints, increased from 74 in FY 2024 to 78 in FY 2025, reflecting Axis Max Lifes unwavering commitment to serving its customers more effectively.
PRODUCT MIX
The Companys business strategy is customer-centric, balanced, and profitable with a strong focus on sourcing through multiple channels. The product mix for FY 2025 is reflective of this strategy, with ULIPs (unit-linked insurance plans) and traditional products accounting for 42% and 58%, respectively, of the annualised premium equivalent (APE). The Company remains focused on maintaining a robust product mix. Keeping pace with industry trends, the Company has consciously increased the contribution of ULIPs in the product mix. The Company remains committed to consistent increase in protection and health segment in overall product mix.
OUTLOOK
The Company reviews progress regularly to ensure the strategy is on track. In FY 2022, after Axis Bank joined as a co-promoter, the Company has chalked out a new growth plan to effectively leverage the strengths of the third-largest private bank in India while maintaining its leadership in the life insurance industry. Over the five year period of FY 2021 to FY 2026, the Company aspires to be:
• the leader in online protection + savings with target to increase sales by 7-9x in 5 years
• among top 3 in offline proprietary distribution with 2.5x sales in 5 years
• among top 3 in protection and health with 3-4x sales in 5 years
• among top 3 providers of holistic retirement offering with 8-9x annuity sales in 5 years
The Company is working on improvising on its growth objectives and strategic framework to achieve consistent and profitable growth. The Companys strategy continues to be anchored around 7 key pillars, namely, consistent market outperformance, leveraging synergies with Axis Bank, augmenting distribution through addition of new partners, build new engines of growth, enhance digital and technological capabilities, better people capabilities and enhance customer centricity across the Value Chain. The Company also aims to augment partnership distribution with continuous focus on inorganic growth.
MAX LIFES PRODUCT OFFERINGS
Axis Max Life has a balanced product portfolio with an optimal mix of traditional savings, retirement, unit-linked plans, and pure protection plans. During FY 2025, the Company added new products and propositions to its portfolio in all categories.
The company launched a unique combination of protection and market-linked returns with Axis Max Life Smart Term with Additional Returns (STAR) ULIP. The product covers multiple contingencies like death, critical illness, and dismemberment through 2 variants- Life Secure and 3D Life Secure. 3D Life Secure offers a unique proposition where policy moves to self-funding mode in any of the 3 scenarios of death, disease and dismemberment. It also offers funding of 3 times of annual premium to ensure that dependents dont compromise on their dreams and lifestyle.
In the pure protection category, Axis Max Life STPP (Smart Term Plan Plus) was launched with industry-first innovations. With seven customer-centric variants, STPP offers unique benefits, including maternity cover and a 15% discount for women, providing exceptional value. Plans features like Early Return of Premium, Income Protection and Whole Life variant deliver outstanding value for money for customers.
The Company also strengthened its group portfolio by launching Axis Max Life Smart GTL, with unique salary protection and child protection propositions.
In savings category, Axis Max Life powered up its top selling products SWAG (Smart Wealth Advantage Guarantee Plan) and SWAG Par (Smart Wealth Advantage Growth Par Plan) by launching advance income feature which offers unprecedented liquidity option in hand of customer by ensuring cover and regular and guaranteed stream of income for as long as whole life.
In FY 2025, your Company launched 5 funds in different investment strategies across large cap, mid cap and small cap categories. Axis Max Life also launched the first of its kind proprietary index fund.
In addition to this, Axis Max Life modified all its products (individual, group, riders) to advance surrender value to improve the value proposition for the customer.
PRODUCT CATEGORIES
• Unit Linked Insurance Plans - A Unit Linked Insurance Plan, popularly known as ULIP, comes with the dual benefit of insurance and investment. While one part of the ULIP plans premium is utilised to provide life insurance cover, the rest is market-linked funds. A ULIP plan is an insurance plan which has both an insurance and an investment component that will help create a lump sum and support financial goals.
• In other words, investing in a ULIP plan provides a flexible approach to investment planning as ULIP plans help one to safely balance ones fund with equity and debt components, with options to switch as the market changes. At the same time, ones investments and life goals are protected by a financial safety net in the form of life insurance coverage under the ULIP plan.
• Term Insurance - Term insurance is the simplest and purest form of life insurance, offering financial coverage to the policyholder against fixed premiums for a specified duration — hence the name Rs.term insurance policy. Choosing and investing in the right term insurance plan is of utmost importance to anyone who has dependents and the right term insurance plan provides security as well as value for money. The premium for the best term insurance plan depends on various crucial factors including age, gender, ppt, sum assured, and the policy term. There are add-on benefits like the return of premium at maturity or riders that customers can opt for by paying an additional premium.
• Savings Plans - Savings schemes or plans are an important part of financial planning and long-term financial stability. Additionally, investing in a suitable savings plan is essential for key life stage milestones, e.g. post-retirement years, marriage, education, or rainy days.
• Retirement Plans - A pension plan or retirement plan is designed to cater to ones financial needs and requirements post-retirement, including medical emergencies, household expenses, and other living costs. Investing in the best retirement plan is essential to safeguard ones golden years. Retirement and pension plans are financial instruments that can shape ones hard-earned income into savings for postretirement life. It comes in various forms to cater to a multitude of savings and investment goals, enabling a financially stable retired life.
• Child Insurance Plans - A child insurance plan is a combination of insurance and investment that ensure a secure future for the child. Life cover is available as a lump sum payment at the end of the policy term. Not just this, these plans also provide flexible payout at important milestones of the childs education. While one may not want to think about unfortunate situations like death or serious medical illness, one must shield the childs future against such incidents. A child insurance plan ensures that the childs future financial needs are taken care of even in ones absence.
• Group Insurance Plans - Group Insurance Plans help deliver multiple insurance benefits to a standard group of individuals in one go. These are available for organisations and groups to provide effective life insurance benefits to their employees or members of different groups. Whether it is health insurance, savings, or voluntary funded plans like group gratuity; credit life for borrowers of banks/financial institutions; or pure protection plans for the members of a master policy, Group Insurance Plans cover various facets to provide complete financial security.
ANALYSIS OF STANDALONE FINANCIAL STATEMENTS
1. Overview of Business Segments:
a) Participating Non-Linked segment:
Products which encompass policyholders to share in the surplus generated during the policy term, are a part of the participating segment . Policyholders receive 8/9ths of the segments surplus, distributed as bonuses added to their policies, with the remaining surplus allocated to shareholders. In the event there is undistributed surplus, it is carried forward under the "Funds for Future Appropriation" in the Balance Sheet.
The actual investment returns of the participating fund and the anticipated future returns determine the bonuses declared to policyholders. This segment includes both Participating Life and Participating Pension products.
b) Non Participating Non Linked segment:
The Non-Participating, Non-Linked segment encompasses products that offer pre-specified benefits for defined events, as determined at the inception of the policy. Policyholders are not entitled to any portion of the surplus generated within this segment. Any surplus arising from the non-participating business is allocated to the shareholders account, subject to the recommendation of the Appointed Actuary. This segment includes Non-Participating Individual and Group Life, Non-Participating Individual and Group Annuity, and Non-Participating Health lines of business.
c) Non Participating Linked segment:
The non-participating linked segment includes products that offer both investment and insurance benefits to policyholders. Returns from these products are directly tied to the performance of the underlying investment fund, and the investment risk is borne entirely by the policyholder. The Company is entitled to charge income from ULIP policies; charges are deducted on account of mortality, morbidity, fund management, front end load, policy admin charges, etc.
Any surplus generated within this segment is transferred to the shareholders account, subject to the recommendation of the Appointed Actuary. The company operates Linked Life, Linked Pension, and Linked Group lines of business under this segment.
2. Income Statement Analysis
| (Rs. In Crore) | |||
Revenue and Profit and Loss account |
FY 2025 | FY 2024 | Growth |
Gross Premium Income |
33,223 | 29,529 | 13% |
Reinsurance (ceded) |
(625) | (544) | 15% |
Total Premium Income (net) |
32,598 | 28,985 | 12% |
Income from investments (net) |
|||
Policyholders |
13,123 | 17,009 | -23% |
Shareholders |
582 | 395 | 47% |
Income from investments (net) |
13,705 | 17,404 | -21% |
Other Income |
|||
Policyholders |
76 | 88 | -14% |
Shareholders |
28 | 30 | -7% |
Total Income (A) |
46,407 | 46,507 | 0% |
Commissions |
3,145 | 2,398 | 31% |
Operating Expenses |
4,579 | 4,114 | 11% |
Interest on Non-convertible debentures |
42 | 37 | 14% |
Expenses towards CSR activities |
10 | 10 | 0% |
GST on linked charges |
256 | 211 | 21% |
Benefits paid |
17,028 | 13,321 | 28% |
Changes in Valuation Reserves (net) |
20,525 | 25,749 | -20% |
Change in funds for future appropriations |
374 | 292 | 28% |
Total expenses (B) |
45,959 | 46,132 | 0% |
Profit before tax (C) = (A-B) |
448 | 375 | 20% |
Provision for tax (D) |
42 | 15 | 180% |
Profit after tax (C-D) |
406 | 360 | 13% |
Segment-Wise Premium Income Summary
Particulars |
FY 2025 |
FY 2024 |
|||||||
(in Rs. Crore) |
Par | Non par | Unit linked | Total | Par | Non par | Unit linked | Total | Growth |
First year premium |
1,302 | 3,134 | 3,764 | 8,200 | 1,309 | 3,111 | 2,469 | 6,889 | 19% |
Renewal Premium |
6,301 | 9,307 | 5,441 | 21,049 | 6,168 | 7,692 | 4,646 | 18,506 | 14% |
Single premiums |
1,023 | 2,860 | 91 | 3,974 | 1,068 | 2,997 | 69 | 4,134 | -4% |
Gross Written Premium |
8,626 | 15,301 | 9,296 | 33,223 | 8,545 | 13,800 | 7,184 | 29,529 | 13% |
Less: Reinsurance ceded |
(25) | (583) | (16) | (624) | (25) | (507) | (12) | (544) | 15% |
Net Premium |
8,601 | 14,718 | 9,280 | 32,599 | 8,520 | 13,293 | 7,172 | 28,985 | 12% |
Gross written premium increased by 13%, from Rs.29,529 Crore in FY 2024 to Rs.33,223 Crore in FY 2025, driven by strong momentum in ULIP (Unit Linked Insurance Plan) sales and targeted product interventions.
First year premium grew by 19%, increasing from Rs.6,889 Crore in FY 2024 to Rs.8,200 Crore in FY 2025, led by a 52% surge in the Unit Linked business, reflecting robust investor interest in market-linked products. The launch of STAR ULIP resonated well with customers seeking long-term wealth creation and exposure to equity markets, further contributing to growth. Demand for ULIP was also boosted due to the strong performance of equity indices during major part of the year.
• Renewal premium grew 14%, from Rs.18,506 Crore in FY 2024 to Rs.21,049 Crore in FY 2025, supported by higher renewal collections across all product segments. The 13th month persistency ratio stood at 87%, underscoring the strength and quality of the in-force book
• Re-insurance premiums for the period increased by 15%, primarily reflecting the strong growth in the Non Participating segment, including group business. This rise is aligned with the overall expansion in premium volumes.
Focused on improving balance and reducing channel concentration, Axis Max Life continued to strengthen its multi-channel distribution strategy. Over the past two years, the share of proprietary channels (including agency) increased from 36% to 41%, a testament to the Companys aim of building a robust, self-owned distribution network.
During the year, the Company expanded its reach by onboarding 40+ new distribution partners across banks, corporate agents, brokers, and GCL partners, further reinforcing its presence across varied customer touchpoints.
Proprietary and other channels grew by 30% while Banca channel grew 12% on Individual adjusted FYP basis.
2) Income from Investments
Particulars (in Rs. Crore) |
FY 2025 |
FY 2024 |
||||||||
Policyholders |
Share holders | Total | Policyholders |
Share holders | Total | |||||
| Par | Non par | Unit linked | Par | Non par | Unit linked | |||||
Interest, dividend and rent |
4,144 | 2,200 | 1,010 | 531 | 7,885 | 3,837 | 1,780 | 1,069 | 378 | 7,064 |
Net Profit / (Loss) on sale / redemption of investments |
1,792 | 119 | 4,220 | 54 | 6,185 | 1,308 | 21 | 3,744 | 17 | 5,090 |
Transfer/ Gain on revaluation/change in fair value |
- |
(47) | (1,448) | - |
(1,495) | - |
(33) | 4,642 | - |
4,609 |
Amortisation of Premium / Discount on investments |
274 | 516 | 357 | 1,147 | 181 | 125 | 333 | (1) | 638 | |
Total income from investment |
6,210 | 2,788 | 4,139 | 585 | 13,722 | 5,326 | 1,893 | 9,788 | 394 | 17,401 |
AUM |
74,868 | 43,036 | 48,075 | 9,093 | 175,072 | 68,476 | 32,076 | 44,434 | 5,848 | 1,50,836 |
Policyholders
Non-linked (Par and Non-par)
The segment witnessed an increase in income from interest, dividend and rent from Rs.5,617 Crore in FY 2024 to Rs. 6,343 Crore in FY 2025 led by higher Asset Under Management (AUM), supported by higher premiums across both renewals and new business. Net profit on sale of investments stood at Rs.1,911 Crore for FY 2025, as compared to Rs. 1,329 Crore for FY 2024 on account of higher profit realization across all segments.
Unit linked
The income from interest, dividend and rent in Unit linked fund stood at 1,010 Crore in FY 2025 as compared to Rs. 1,069 Crore in FY 2024. The decline in Interest income was due to lower exposure to Fixed Income securities in the Unit Linked portfolios. Net profit from sale of investments stood at Rs. 4,220 Crore in FY 2025 as compared to Rs. 3,744 Crore in FY 2024.
Fair value change on Unit linked business has decreased from Rs. 4,642 Crore in FY 2024 to negative Rs. 1,448 Crore in FY 2025. Decrease in change in fair value was primarily on the back of relatively weak performance of equity markets during FY2025. In FY2025, equity market have marginally increased by 5.3% as compared to 28.6% growth in FY2024.
Shareholders
Interest income from shareholders increased from Rs. 378 Crore in FY 2024 to Rs. 531 Crore in FY 2025, led by higher Asset Under Management (AUM) and increased yields. Capital infusion from Axis Bank Limited, funds raised via subordinated debt and profits for the year aided in AUM growth. Net profit from the sale/redemption of investments surged from Rs. 17 Crore in FY 2024 to Rs. 54 Crore in FY 2025.
Particulars (in Rs. Crore) |
FY 2025 | FY 2024 |
Investments: |
||
Policyholders Investments |
165,979 | 144,987 |
Shareholders Investments |
9,093 | 5,848 |
A. Without Unrealised Gains/Losses |
||
Shareholders Funds |
7.8% | 7.6% |
Policyholders Funds |
9.8% | 9.8% |
• Non linked |
||
a) Participating |
9.3% | 8.8% |
b) Non participating |
7.5% | 7.3% |
• Linked- non participating |
13.0% | 13.6% |
B. With Unrealised Gains/Losses |
||
Shareholders Funds |
10.7% | 10.6% |
Policyholders Funds |
9.7% | 17.0% |
• Non linked |
||
a) Participating |
10.8% | 14.8% |
b) Non participating |
9.9% | 9.7% |
• Linked- non participating |
8.0% | 26.5% |
3) Other income
Other income mainly comprises interest on policy loans, interest on Income Tax refund, reinstatement / revival charges, interest on loan to ESOP trust and income on unclaimed amount of policyholders amongst others. Policyholders other income decreased from Rs.88 Crore in FY 2024 to Rs.76 Crore in FY 2025 mainly due to increase in interest paid on margin money. Shareholders other income stood at Rs.28 Crore in FY 2025 vs Rs.30 Crore in FY 2024.
4) Commissions
The summary of commission expense is as follows:
(Rs. in crore) |
||||||||
Particulars |
FY 2025 |
FY 2024 |
||||||
| First Year |
Renewal | Single | Total | First Year | Renewal | Single | Total | |
Premium |
8,200 | 21,049 | 3,974 | 33,223 | 6,889 | 18,506 | 4,134 | 29,529 |
Commission |
2,516 | 488 | 141 | 3,145 | 1,894 | 440 | 64 | 2,398 |
Commission % of Premium |
31% | 2% | 4% | 9% | 27% | 2% | 2% | 8% |
In FY 2025, commission expenses have increased due to volume led business growth and revised commission structure as per IRDAI (expenses of management, including Commission of Insurers) Regulations, 2024. The new regulations provide more flexibility in commission structures, allowing insurers to align intermediary incentives with business growth more efficiently.
5) Operating Expenses
| (Rs. in crore) | |||
Particulars |
FY 2025 | FY 2024 | Growth % |
Employees remuneration and welfare benefits |
2,628 | 2,350 | 12% |
Advertisement and publicity |
552 | 457 | 21% |
Others |
1,338 | 1,279 | 5% |
Operating Expenses Policyholders (A) |
4,518 | 4,086 | 11% |
Operating Expenses Shareholders (B) |
121 | 74 | 64% |
Total |
4,639 | 4,160 | 11% |
Operating Expenses under Policyholders -
The total policyholder operating expenses to total premium ratio came in at 14.2% in FY 2025 as compared to 13.8% in FY 2024.
Employee remuneration
Employee cost increased 12%, from Rs.2,350 Crore in FY 2024 to Rs.2,628 in FY 2025, due to yearly increments and investments in distribution channels.
• Advertisement and publicity spends
Advertisement and publicity expenses increased 21%, from Rs.457 Crore in FY 2024 to Rs.552 Crore in FY 2025, due to rebranding,
and strategic optimization of advertising investments to improve brand visibility and market reach.
6) Claims and Benefits
Axis Max Life strives to provide death claim payment within one day with the InstaClaim™ initiative for its vintage policyholders (policies that have been in force for at least 3 continuous years with the Company).
The Company boasts of 99.70% claim settlement ratio across offerings garnering ample trust, strengthening brand equity and giving an edge over competition.
Benefits paid summary
Particulars (in Rs. Crore) |
FY 2025 |
FY 2024 |
||||||
| Par | Non par | Unit Linked | Total | Par | Non par | Unit Linked | Total | |
Surrenders, Withdrawals & Discontinuance |
2,940 | 781 | 6,770 | 10,491 | 2,132 | 489 | 5,989 | 8,610 |
Maturity & Periodical Benefits |
826 | 1,134 | 1,155 | 3,115 | 888 | 530 | 586 | 2,004 |
Death & Health Claims |
373 | 1,498 | 176 | 2,047 | 360 | 1,097 | 172 | 1,629 |
Bonus to Policyholders |
1,871 | - | - | 1,871 | 1,432 | - | - | 1,432 |
Other Claims |
57 | 8 | 13 | 78 | 48 | 5 | 19 | 72 |
Total Benefits Paid |
6,067 | 3,421 | 8,114 | 17,602 | 4,860 | 2,121 | 6,766 | 13,747 |
Less: Reinsurance on claims |
(14) | (558) | (5) | (577) | (9) | (414) | (8) | (431) |
Net Benefits Paid |
6,053 | 2,863 | 8,109 | 17,025 | 4,851 | 1,707 | 6,758 | 13,316 |
Maturity and Survival Benefits increased from Rs.2,004 Crore in FY 2024 to Rs.3,115 Crore in FY 2025, primarily attributable to:
i. Higher Volume of Policies Reaching Benefit Payout Stage:
A larger cohort of policies matured during the year, reflecting the natural progression of earlier business vintages, in turn leading to a higher outflow of maturity and survival benefits.
ii. Introduction of Insta Income feature:
Insta Income, a product enhancement was launched, under which at the inception of the policy benefit are paid, leading to an upfront increase in survival benefit outflows during the year.
• Death and health claims increased from Rs.1,629 Crore in FY 2024 to Rs.2,047 Crore in FY 2025, primarily driven by the in-force book led growth.
• Surrenders, withdrawals, and discontinuance increased from Rs.8,610 Crore in FY 2024 to Rs.10,491 Crore in FY 2025, across all product segments, namely, Unit Linked, Participating, and Non-Participating. This was led by a combination of evolving financial needs of the customers, and growing awareness of alternative investment options reflecting a shift in financial priorities and liquidity needs. The Company has proactively engaged with policyholders with a view to emphasize the long-term benefits of continuing their policies and aligning them with their financial goals.
7) Change in valuation of policy liabilities
The following table provides, summary of the changes in valuation of liabilities, for the periods indicated
| (Rs. in crore) | ||
Particulars |
FY 2025 | FY 2024 |
(a) Gross Liabilities |
17,214 | 16,590 |
(b) Fund Reserves |
3,560 | 8,434 |
(c) Discontinuance fund |
29 | 496 |
(d) Amount ceded in Reinsurance |
(277) | 230 |
(e) Amount accepted in Reinsurance |
- | - |
Change in valuation of liability against life policies in force |
20,526 | 25,750 |
Changes in valuation reserves indicate changes in actuarial liabilities for policies that are currently in force as well as for policies for which premium has been ceased but a liability still remains. Under the unit linked section, the change in fund reserves includes the change in unit fund value of policyholders fund.
The change in fund reserves declined from Rs.8,434 Crore in FY 2024 to Rs.3,560 Crore in FY 2025 due to slowing unrealised gains/(losses) led by the mark- to-market valuation of underlying assets, caused by passive equity market performance during the year.
8) Change in funds for future appropriation (FFA):
| (Rs. in crore) | ||
Particulars |
FY 2025 | FY 2024 |
(i) Linked |
16 | - |
(ii) Non Linked (Par) |
359 | 292 |
FFA reflects the surplus arising from the participating and linked business to the extent it is not distributed.
The Participating FFA increased from Rs.292 Crore in FY 2024 to Rs.359 Crore in FY 2025, primarily reflecting a higher participating surplus generated and not-distributed during the year.
In accordance with the provisions outlined in the IRDAI Master Circular on Actuarial, Finance and Investment Functions of Insurers, amounts have been set aside for Linked Fund for Future Appropriations (Linked FFA).
3. Balance Sheet Analysis
Sources of funds i. Shareholders funds
The breakup of capital and reserves is as follows:
| (in crore) | ||
Particulars |
As on March 31, 2025 | As on March 31, 2024 |
Share Capital |
2,061 | 1,919 |
Reserve and surplus |
3,978 | 2,018 |
Credit/Debit fair value change account |
85 | 61 |
Shareholders fund |
6,124 | 3,998 |
Net worth (shareholders fund excluding the policyholders hedge fluctuation reserve) increased from Rs.3,919 Crore as on March 31, 2024 to Rs.5,960 Crore as on March 31, 2025, primarily driven by capital infusion from Axis Bank Limited and profit generation and. The fair value change account, which reflects unrealised gains/(losses) on equity securities within the shareholders fund, increased from Rs.61 Crore in FY 2024 to Rs.85 Crore in FY 2025, as a result of increase in Value of Equity holding in the Shareholders Investment Portfolio.
ii. Borrowings
As on March 31, 2025, the Companys borrowings stood at Rs.996 Crore. This includes non-convertible debentures (NCDs) amounting to Rs.496 Crore issued in FY 2022, carrying a coupon rate of 7.50% per annum, payable annually and non-convertible debentures (NCDs) amounting to Rs.500 Crore issued in FY 2025, carrying a coupon rate of 8.34% per annum, payable annually.
During FY 2025, unsecured, subordinated, nonconvertible debentures (NCDs) worth Rs.500 Crore were issued in the nature of Rs.Subordinated Debt in accordance with the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021, IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024. The said NCDs bearing coupon rate of 8.34% were allotted on February 18, 2025 and are redeemable at the end of 10 years from the date of allotment with a call option to redeem the NCDs post completion of 5 years from the date of allotment and annually thereafter. Subordinated debt was issued to enhance the solvency position and support working capital requirement.
iii. Policyholders fund
| (Rs. in crore) | ||
Particulars |
As on March 31, 2025 | As on March 31, 2024 |
Credit / (Debit) Fair Value Change Account |
4,240 | 3,920 |
Policy Liabilities |
114,292 | 97,355 |
Provision for Linked liabilities |
42,359 | 38,799 |
Funds for discontinued policies |
5,409 | 5,380 |
Funds for future appropriation |
4,247 | 3,873 |
Total Policyholders Funds |
170,547 | 149,327 |
• The Credit/(Debit) Fair Value Change Account reflects movements arising from mark-to- market valuation of policyholder assets, driven by equity market performance and the asset mix, including alternative investments. The account increased from Rs.3,920 Crore in FY 2024 to Rs.4,240 Crore in FY 2025, led by the favourable interest rate movements leading to a positive mark-to-market impact of Rs.343 Crore in derivative positions. This was partially offset by a decline in the fair value change of equity securities and alternative assets.
• Policy liabilities increased from Rs.97,355 Crore in FY 2024 to 114,292 Crore in FY 2025. The increase in policy liability is in line with business volume.
• Provision for linked liabilities and Fund for Discontinued policies represent unit fund liability. This increased from Rs.38,799 Crore in FY 2024 to Rs. 42,359 Crore in FY 2025 due to higher business volumes in the ULIP segment. Despite the market downturn in second half of FY 2025, the ULIP segment experienced robust growth in new business premiums and policy issuances. This increased the overall size of the linked liability pool.
• Funds for Future Appropriation (FFA) amount pertains to the participating and unit-linked segments, where the allocation between participating policyholders and shareholders remains undetermined as at the balance sheet date. FFA increased from Rs.3,873 Crore in FY 2024 to Rs.4,247 Crore in FY 2025 primarily driven by current year policyholder surplus in PAR business. The Linked Fund for Future Appropriation (Linked FFA) has been created in accordance with the IRDAI Master Circular on Actuarial, Finance and Investment Functions of Insurers.
Application of funds
iv. Investments
The graph below summaries the Asset Under Management (AUM) of the company:
Particulars (in Rs. Crore) |
FY 2025 | FY 2024 |
Shareholders Investments |
9,093 | 5,848 |
Policyholders Investments |
118,211 | 100,808 |
Assets Held to Cover Linked Liabilities |
47,768 | 44,179 |
Total |
175,072 | 150,835 |
Shareholders investment
Shareholders investments grew from Rs.5,848 Crore as of March 31, 2024 to Rs.9,093 Crore as of March 31,2025, primarily driven by capital infusion from Axis Bank, issuance of subordinated debt in accordance with SEBI regulatory guidelines, profits generated during the year.
• Policyholders investments
Policyholders investments increased from Rs.100,808 Crore as of March 31, 2024 to Rs.118,211 Crore as of March 31, 2025 in line with business volume and higher investment income.
• Assets held to cover linked liabilities
Assets Held to Cover Linked Liabilities increased by 8%, from Rs.44,179 Crore as of March 31, 2024 to Rs.47,768 Crore as of March 31, 2025. Increase due to higher premium income has been offset with negative market movements during the second half of FY 2025 and higher benefits paid under the Unit-Linked portfolio.
v. Loans
Loans, including those extended to the ESOP Trust, increased from Rs.1,060 Crore as on March 31, 2024 to Rs.1,255 Crore as on March 31, 2025, primarily attributable to a higher number of customers availing policy loans, which are fully secured against the surrender value of the respective policies. Additionally, loans to the ESOP Trust rose by Rs.22 Crore during the year.
vi. Current Assets
The following table sets forth, for the periods indicated, summary of current assets:
| (Rs. in crore) | ||
Particulars |
As on March 31, 2025 | As on March 31, 2024 |
Income accrued on investments |
2,006 | 1,680 |
Outstanding premiums |
1,083 | 915 |
Dues from other entities carrying on insurance business (including reinsurers) |
125 | 122 |
Others Assets |
1,108 | 894 |
Cash and Bank balance |
1,329 | 1,518 |
Total |
5,651 | 5,129 |
Income accrued on investments increased from 1,680 Crore as on March 31, 2024 to Rs.2,006 Crore as on March 31, 2025 due to increase in investments in fixed income securities.
Outstanding premium represents premium due but not received on non-linked policies which are within allowed grace period as per IRDAI regulation. The same increased from Rs.915 Crore as of March 31, 2024 to 1083 Crore as at March 31, 2025 due to higher policy base eligible for renewal as compared to previous year.
Dues from other entities carrying on insurance business represents the net amount due from reinsurers (pertaining to claims accepted and receivable by Company, net of reinsurance premium payable to them). It also includes claims received by Company but pending decision and intimation to the reinsurers.
Other Assets, which includes prepayments, advance to suppliers, advance to employees, security and other deposits, outstanding trade investments, derivatives assets, derivative margin money, unclaimed assets, service tax/income tax deposits and other assets, increased primarily due to an increase in derivatives assets from Rs.410 Crore as of March 31, 2024 to Rs.736 Crore as at March 31, 2025. This was aided by favourable interest rate movements. Income Tax deposit reduced by Rs.42 Crores and Investments held towards Unclaimed amounts of Policyholders reduced by Rs.52 Crores.
vii. Current liabilities:
The summary of current liabilities is as follows
| (Rs. in crore) | ||
Particulars |
As on March 31, 2025 | As on March 31, 2024 |
Agents balances |
533 | 460 |
Unallocated premium |
440 | 317 |
Sundry creditors |
1,313 | 1,025 |
Claims outstanding (includes pending investigation) |
910 | 780 |
Payable for purchase of investments |
119 | 26 |
Others Current Liabilities |
1,490 | 1,010 |
Total |
4,805 | 3,618 |
Agent balances represents amounts payable to insurance agents and intermediaries towards commission as at the balance sheet date. This increased from Rs.460 Crore as at March 31, 2024 to Rs.533 Crore as at March 31, 2025 due to higher business volumes at the end of the financial year.
• Unallocated premium, which includes premium received on policies that are in the process of being issued or pending due to underwriting requirements, increased from Rs.317 Crore as at March 31, 2024 to Rs.440 Crore as at March 31, 2025.
• Sundry creditors, which includes amount payable/ accruals for various services utilised by the Company for expenses like employee related cost, marketing cost, other expenses etc, increased from Rs.1,025 Crore as of March 31, 2024 to Rs.1,313 Crore as at March 31, 2025 is due to operational business activity.
Claims outstanding balance increased from Rs.780 Crore to Rs.910 Crore due to claim intimated to the Company. These are a result of pending investigation as a part of the normal claims process or pending due to incomplete documentation from the policyholders. Further, in line with IRDAI guidance, few amounts which earlier formed part of Unclaimed Amounts of Policyholders are now part of Claims outstanding.
• Payable for purchase of Investments represents Trades entered but outstanding for settlement.
• Others include Derivative Liability, Tax deducted, Goods and Services Tax etc.
viii. Contingent liabilities
The below table summarises the contingent liabilities:
| (Rs. in crore) | ||
Particulars |
As on March 31, 2025 | As on March 31, 2024 |
Partly paid-up investment |
160 | 240 |
Claims, other than against policies, not acknowledged as debts by the Company |
43 | 30 |
Others |
162 | 141 |
Total |
365 | 412 |
Contingent liability for partly paid up investments decreased from Rs.240 Crore as at March 31, 2024 to 160 Crore as at March 31, 2025 due to instalment payment for partly paid-up investment.
Others, which includes potential liability in respect of repudiated policy holder claims, was marginally higher due to movement in fresh claims received and claims settled during the year.
ix. Cash flow statements
| (Rs. in crore) | ||
Particulars |
FY 2025 | FY 2024 |
Cash flow from operating activities |
8,339 | 8,742 |
Cash flow from investing activities |
(9,799) | (9,835) |
Cash flow from financing activities |
2,074 | (37) |
• Cash flow from operating activities:
Cash flows from operating activities decreased from Rs.8,742 Crore in FY 2024 to Rs. 8,339 Crore in FY 2025. This was as a result of Higher Premium Income which was offset by Higher amount of Benefits paid and Higher commission expense
• Cash flow from investing activities
Cash outflows from investing activities amounted to Rs.9,799 Crore in FY 2025, marginally lower than the Rs.9,835 Crore in FY 2024. Cash flow from investing activities represents investment/redemption of funds in various securities such as government bonds, equity, corporate bonds/ paper, money market instruments and liquid mutual funds.
Cash flow from financing activities
During FY 2025, the Company reported net cash inflows of Rs.2,074 Crore from financing activities, compared to a net cash outflow of Rs.37 Crore in FY 2024, mainly due to capital infusion from Axis Bank Limited coupled with proceeds received from the issuance of subordinated debentures during the year.
x. Key analytical ratio
Profitability
(Rs in Crore) |
|||
Particulars |
FY 2023 | FY 2024 | FY 2025 |
Backbook Surplus (A) |
1,563 | 1,627 | 2,076 |
New Business Strain (B) |
-1,317 | -1,603 | -2,117 |
Share holder income (C) |
189 | 336 | 447 |
Total (A+B+C) |
435 | 360 | 406 |
Shareholder profit is at Rs. 406 crore in FY 2025 as compared to Rs. 360 crore in FY 2024. This profit comprises:
• Existing business surplus representing profits emerging during the year from business written over the years which grew by 28% in FY 2025
• New business strain is at Rs.2,117 Crore in FY 2025 vs Rs.1,603 Crore in FY 2024 due to the long-term nature of insurance contracts. In these contracts, costs are recognized in the period in which they are incurred while revenue is recognized over the period of the contract.
• Shareholders income represents investment and other income arising on shareholders funds, net of expenses grew by 33% in FY 2025 & 54% CAGR over 2-year period.
xi. New business margin
Year |
Value of new Business (in Rs. Crore) | New business margin (post overrun) |
FY 2023 |
1,949 | 31.2% |
FY 2024 |
1,973 | 26.5% |
FY 2025 |
2,107 | 24.0% |
Axis Max Lifes margins for FY 2025 were lower by 250 basis points as compared to last year, primarily due to lower proportion of non-PAR and higher proposition of ULIPs in our product mix. Additionally, during the year surrender regulation also impacted our margins however the impact was mitigated to large extent by actions such as launch of innovative product proposition, tweaking our variant mix, changing the customer IRR and distribution compensations.
xii. Analysis of change in Embedded Value (EV)
Value of new business growth, unwind and positive operating variance drives operating return on EV
• Non-operating variance is positive from both debt and equity Sensitivity analysis as at 31st March 2025
EV |
Value of New Business |
New Business Margin |
||||
| Value (Rs. Cr) | % Change | VNB (Rs. Cr) | % Change | NBM (Rs. Cr) | % Change | |
Base Case |
25,192 | - | 2,107 | - | 24.0% | |
Lapse/Surrender-10% Increase |
25,372 | 0.7% | 2,043 | (3.0%) | 23.3% | (0.7*) |
Lapse/Surrender- 10% decrease |
24,986 | (0.8%) | 2,171 | 3.0% | 24.8% | 0.8% |
Mortality-10% increase |
24,489 | (2.8%) | 1,942 | (7.9%) | 22.1% | (1.9%) |
Mortality -10% decrease |
25,886 | 2.8% | 2,273 | 7.9% | 25.9% | 1.9% |
Expenses - 10% increase |
24,963 | (0.9%) | 1,911 | (9.3%) | 2US% | (2.2%) |
Expenses - 10% decrease |
25,410 | 0.9% | 2,303 | 9.3% | 26.3% | 23% |
disk free rates -1% increase |
24,4*9 | (2.9%) | 2,113 | 0.3% | 24.1% | 0.1% |
Risk free rates -1% reduction |
26,045 | 3.4% | 2,099 | (0.4%) | 23.9% | (0.1%) |
Equity values- 10% immediate rise |
23,522 | 1.3% | 2,107 | Negligible | 24.0% | Negligible |
Equity values- lufli immediate faII |
24,862 | (1.3%) | 2,107 | Negligible | 24.0% | Negligible |
Corporate tax Rate -2% Increase |
24,638 | (2.2%) | 2,036 | (3.4%) | 23.2% | (0.8%) |
Corporate tax Rate - 2% decrease |
25745 | 2.2% | 2,178 | 3.4% | 24.8% | 0.8% |
Corporate tax rate increased to 25% |
22,709 | (9.9%) | 1,790 | (15.1%) | 20.4% | (3.6%) |
4. SOLVENCY
The solvency margin ratios as defined by the regulatory authorities are maintained by the Company. Solvency ratio stood at 201% as on March 31, 2025 as compared to 172% as on March 31, 2024. The improvement in solvency ratio is the result of the capital infusion by Axis Bank and increase in debt during the year. The improvement reflects the strong financial health of the Company over the longer term.
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