Max Life Insurance new business margin (NBM) expanded to 22.2% in Q1FY24, improved 110 bps over corresponding previous quarter mainly driven by change in product mix
Value of New Business (VNB) grew by 16% to Rs. 247 Crore in Q1FY24
New Delhi:
After the approval of the Max Financial and Max Life Boards, Axis Bank will be infusing Rs 1,612 Cr by subscribing to equity shares of Max Life, at fair market value.
Axis Bank has received requisite approval from RBI for infusion of further capital in Max Life. Post subscription to the preferential issue of shares, Axis Entities shall collectively hold 19.02% equity share capital of Max Life.
Axis Bank will have the right to acquire additional 0.98% stake from MFSL. The proposed transaction is subject to receipt of shareholders’ approval and regulatory approvals from IRDAI, PFRDA and CCI.
On the allotment of the said share capital to Axis Bank Limited, the shareholding held by Max Financial in Max Life will stand reduced to 80.98% from the current level of 87%.
Analjit Singh, Chairman Max Life Insurance and Max Financial Services said, “The increase stake in Max Life by Axis Bank, has been long awaited and will lead to a more natural balanced ownership level considering the importance of the power of distribution through the Banca channel of Axis Bank.”
Prashant Tripathy, MD and CEO, Max Life Insurance, said, “The additional investment by Axis Bank will hugely strengthen our insurance franchise. On the back of our innovative and balanced product mix, and strong growth in proprietary business, we’ve delivered a strong quarter. We are focused to drive new and strategic partnerships to unlock growth for the company along with building momentum in the existing ones.”
This capital infusion will help Max Life to support its future growth ambitions, to augment its capital position and to improve solvency margins.
Max Financial Services Limited (MFSL) today announced its financial results for the first quarter of the financial year FY24.
During Q1FY24, the company reported consolidated revenue of Rs. 4,730 crore, grew 19% year-on-year and consolidated profit after tax (PAT) at Rs. 101 crore, up 48% year-on-year on account of higher investment income.
During Q1FY24, Max Life new business premium grew 25% to Rs. 1,857 crore and Annualised Premium Equivalent (APE) Up by 10% to Rs. 1,113 crore driven by strong growth in proprietary channels. Further, the renewal premium income (including group) rose 15% to Rs. 3,014 crore, taking the gross written premium to Rs. 4,871 crore, an increase of 19% over the corresponding previous quarter.
Further new business margin (NBM) expanded to 22.2% in Q1FY24, improved 110 bps over corresponding previous quarter mainly driven by change in product mix.
Value of New Business (VNB) grew by 16% to Rs. 247 Crore in Q1FY24.
Max Life reported an Embedded Value of Rs 16,938 crore, while the Operating Return on EV (RoEV) over Q1FY24 stood at 14.0%, improved by 50 bps.
The life insurer’s assets under management (AUM) were Rs. 1,29,127 crore as of June 30, 2023, Up 21% over the corresponding previous quarter
Proprietary channels new business premiums grew by 23% year-on-year to Rs. 421 Crore as result contribution of proprietary channels to total new sales increased from 34% in Q1FY23 to 39% in Q1FY24.
During Q1FY24, Max Life delivered a strong performance, and focus on retirement led to growth of 260% in the Annuity business in Q1 FY24. Max Life Pension Fund Management Limited added highest AUM among new PFMs in Q1 FY24, AUM increased to Rs. 293 Cr as of June 30, 2023.
Max Life has secured one new distribution partnerships with South Indian Bank and 5 new renowned brokers in Q1FY24.
Max Life consistently maintained industry best claims paid ratio at 99.51% in FY23.