Max Financial Services (MFS) May 28 reported a 30 per cent fall in consolidated net profit to Rs 391 crore for 2018-19. The net profit was lower compared to the previous year, largely due to one-time expenses for pursuing an inorganic opportunity for Max Life and reversible fair valuation impact as per the recently adopted accounting methodology IndAS, it said in a release.
The company's consolidated revenue, which has a majority stake in Max Life Insurance, grew 17 per cent to Rs 17,538 crore as compared to the year-ago period, it said.
Max Life Insurance demonstrated broad-based growth across channels with gross written premium in FY2019 at Rs. 14,575 Cr., growing 17 per cent over the previous year. The company's new business premium (on APE basis) stood at Rs 3,950 Cr., achieving a growth of 22 per cent over the previous year.
Max Life’s renewal premium was Rs. 9,415 Cr., growing 15 per cerrnt over the previous year. Overall growth was also spurred by increase of 18 per cent in the bancassurance channel.
The Value of New Business (VNB) written during FY2019 was Rs 856 cr, growing 30 per cent over the previous year, and the New Business Margin (NBM) stood at 22 per cent, 150 bps higher compared to the previous year.
This was primarily driven by higher sales of protection products, an increase in non-participating (Non-PAR) business and higher proportion of the assured wealth plan.
Max Life achieved an important milestone this year with its Assets Under Management (AUM) crossing the Rs. 60,000 Cr. mark for the first time. The AUM as at 31st March 2019 stood at Rs. 62,798 Cr, growing 20 per cent over the previous year.
Max Life also set a benchmark as its Claims Settlement Ratio further improved by 48 bps to 98.7 per cent in FY19 from 98.3per cent in FY 18, as per the Insurance Regulatory and Development Authority of India (IRDAI) Annual Report.
The assets under management of Max Life crossed Rs 60,000 crore and grew 20 per cent to Rs 62,798 crore, it added.