The consolidated profit before tax (PBT) in 9MFY22 stood at Rs 236 crore, lower as against previous year primarily due to COVID-19-related provision in 9MFY22 and one-off items in the same period last year
New Delhi:
Max Financial Services Limited (MFSL), with Max Life as a sole subsidiary, today announced its financial results for the quarter (Q3) and nine months of the financial year FY22 (9MFY22).
During 9MFY22, MFSL reported consolidated revenues of Rs. 14,160 crore, a growth of 21% from the corresponding year-ago period.
The consolidated profit before tax (PBT) in 9MFY22 stood at Rs 236 crore, lower as against previous year primarily due to COVID-19-related provision in 9MFY22 and one-off items in the same period last year.
MFSL’s sole operating subsidiary, Max Life, continued its growth journey by maintaining a 5-year CAGR of 18% on Individual new business compared with 13% 5-year CAGR of the top 3 listed life insurers.
Further, Max Life new business sales (on annual premium equivalent (APE) basis) grew 23 per cent on a year-on-year basis to Rs 3,751 crore in 9MFY22 and 30 per cent to Rs. 1,594 crore in Q3FY22, majorly driven by strong growth across channels.
APE is calculated as 100% of regular premium and 10% of single premium.
Further, the renewal premium income (including group) rose 19% to Rs. 9,128 crore from Rs. 7,669 crore in the year-ago period.
This propelled a 21% increase in gross written premium to Rs. 14,415 crore in 9MFY22 from Rs. 11,192 crore in FY21. This strong performance was despite a more severe impact of the second wave of COVID-19 compared with the first wave.
Claim experiences were higher than expected across all lines of businesses with significantly higher variance for Protection and Group businesses. Max Life maintained its 4th rank in the private industry.
In terms of industry performance, on 2-year CAGR, Max Life surged 16% compared with the 11% growth in the overall private industry.
Max Life has maintained a sharp focus on balanced product mix, which has aided a 20% growth in the Value of New Business (VNB) to Rs. 942 crore in 9MFY22 from Rs. 788 crore in the year-ago period. VNB grew at a CAGR of 27 pr cent over last five years.
The higher growth in VNB figures was due to higher sales and change in business mix, thus highlighting the strong growth momentum of Max Life.
The new business margin (NBM) for 9MFY22 was 25.1 % and in line with the FY21 margins.
Max Life reported an Embedded Value (EV) of Rs. 13,412 crore in 9MFY22 – an uptick of 19% from Rs. 11,723 crore. in the year-ago period driven by growth in value of new business and quality of in-force business. The Operating Return on EV (RoEV) in 9MFY22 stood at 19.2%, a spurt of 120 basis points**. The Assets Under Management (AUM) in the first nine months of FY22 advanced 21% to Rs. 1.02 trillion from Rs. 84,724 Cr in the year-ago period.
Mohit Talwar, Managing Director, Max Financial Services, said, “Our robust performance in 9MFY22 and Q3FY22 was driven by our growth in proprietary channels, spurt in Banca channels and continued leadership in protection sales in e-commerce. Our constant endeavors towards customers through innovative products such as the Smart Wealth Income plan in Q3 FY22 worked well for us despite the immense pressure on the overall sector due to the COVID-19 provisioning.”
Max Financial Services Limited (MFSL) is part of India’s leading business conglomerate – the Max Group. Focused on Life Insurance, MSFL owns and actively manages an 81.83% majority stake in Max Life Insurance, India’s largest non-bank, private life insurance company.
Max Life conducted the ‘India Retirement Index Study’ (IRIS) in partnership with Karvy Insights. India’s Retirement Index stood at 44 in terms of health and financial preparedness and is a key retirement concern amongst Indians. It also released its ESG Report 2021 during the quarter under review, which focuses on the company’s transition to become one of the most sustainable workplaces that provide a conducive environment for the growth of its employees. Lastly, following the appointment of Max Life as a ‘Sponsor’ of the Pension Fund, the formation of the subsidiary is underway, and it has sought IRDAI’s permission to set up a new company ‘PFM’ in line with the regulatory requirements.