Max Life Insurance achieved new business Margin (NBM) of 26.5% in FY24 and 28.6% in Q4FY24. The life insurer’s value of new business (VNB) of Rs 1,973 crore, grew 1% in FY24
The life insurer reported an embedded value(EV) of Rs 19,494 crore, while the operating return on embedded value (RoEV) at 20.2%
New Delhi:
Max Financial Services, which has two subsidiaries-Max Life Insurance Company and Max Life Pension fund management- has suffered a loss of Rs 50.08 crore in Q4FY24 as against a profit of Rs 52.45 crore in the year-ago period.
Max Life Insurance achieved new business Margin (NBM) of 26.5% in FY24 and 28.6% in Q4FY24. The life insurer’s value of new business (VNB) of Rs 1,973 crore, grew 1% in FY24.
The life insurer reported an embedded value(EV) of Rs 19,494 crore, while the operating return on embedded value (RoEV) at 20.2%.
Max Life’s assets under management (AUM) crossed Rs 1.5 lakhs crore to Rs 1,50,836 crore as on March 31, 2024, up 23% over the previous year.
With the infusion of Rs 1,612 crore capital by Axis Bank into Max life, solvency margin stands at 206% as of in Apr’24 (172% in Mar’24).
Prashant Tripathy, CEO and Managing Director, Max Life Insurance Company, said, “ We achieved a strong 16% year-on-year growth, exceeding the private industry’s 8% growth. Our success stems from our consistent focus on scaling our proprietary channels, maintaining partnerships, expanding distribution with new partners, and strengthening our presence into untapped sub-categories of protection and retirement. ”
Max Life Pension fund management (PFM) asset under management (AUM) grew by 300% to Rs 576 crore as of March 31, 2024, against Rs143 crore as of March 31, 2023, further strong increase in number of subscribers by 6.6x to 19,602 as of March 31, 2024.
During FY24, Max Life total new business premium (individual and group) grew by 23% to Rs 11,023 crore and individual adjusted first year premium grew by 16% to Rs 6,961 crore leading to private market share gain by 61 bps to 9.4%.
Number of new retail policies grew by 20% during FY24. Further, the renewal premium rose 13% to Rs 18,506 crore, taking the gross written premium to Rs 29,529 crore, an increase of 17 per cent over the previous financial year.
Proprietary channels registered highest ever new business premiums (APE) growth of 28% year on-year to Rs 2,957 crore as result contribution of proprietary channels to total new sales increased from 37% in FY23 to 40% in FY24.
The company registered secular growth across all proprietary channels i.e. online (e-commerce), agency and direct sales teams.
Max Life maintained its leadership position in online sales. Banca channels new business premiums (APE) grew by 12% to Rs 4,340 crore in FY24. Max Life continued to maintain its dominant counter share in key banca channels. Max Life also significantly augmented its distribution network in FY24, signing 40+ new partnerships.
In Q4FY24, Individual Adjusted First Year Premium saw an increase of 10%, compared to 2% growth in the private sector crore leading to market share gain by 73 bps to 10.4%. The new business growth was fuelled by strong growth in Retail Protection & Health, Group Credit Life and Annuity business. Retail Protection and Health grew by 63%, Group Credit Life grew by 62%. Our focus on growing protection segment has led to our Individual new business sum assured achieving Rank 3 in the industry with a growth of 33% on a full year basis, ahead of industry growth rate.
Annuity business grew by 59% in FY24. There were 37 product interventions during FY24 which added to the new business and innovations like SWAG Premium and Swag Pension.