The net profit of Max Life Insurance has fallen by 20 per cent to Rs.528 crore, in 2017-18 compared to Rs.660 cr.in 2016-17.
The fall in the net profit during the year was due to non-repeatable high investment income recorded in FY17, said the company.
For FY18, the VNB(value of new business ) of the company was Rs 656 cr(calculated at actual costs), resulting into new business margin of 20.2 per cent. The VNB represents the value added to the EV due to the new business written by the Company during the year.
The company has proposed shareholders’ dividend (net of Dividend Distribution Tax) of Rs163.10 crore, taking the total dividend distribution to Rs326.20 crore translating to 17 per cent of the face value of each share.The life insurer has also announced policyholder bonus of Rs.1084 crore, an increase of Rs. 230 crore,in 2017-18 from the previous year figure of Rs 854 crore.
Rajesh Sud, executive vice Chairman & managing director, Max Life Insurance said, " The life insurer actively leveraged growing household interest in financial savings and digitisation in India. During the year Max Life Insurance not only recorded increase in case size but also covered more lives than in past years which resulted in a robust growth in new business. Our strong business performance has resulted in superior returns for both our policyholders in form of bonus and investment return in ULIPs fund and shareholders in form of dividend.”
The life insurer recorded Individual adjusted first year premium of Rs. 3,215 crore achieving growth of 22% in 2017-18 (FY18). During the reporting period, the Gross Written Premium of the company grew by 16% to Rs. 12,501 crore, while the renewal premium recorded growth of 15% to Rs. 8,152 crore.
Some of the key business parameters of the life insurer in FY18 are:
-New Business Premium (Individual + Group) at Rs. 4,349 crore, recorded growth of 19% while retaining private market share at 9 per cent,
-Conservation ratio was at 90 per cent as compared to 89 per cent in the previous year,
–Claims paid ratio grew to 98.26 per cent in FY18 from 97.81 per cent in FY17,
-Assets under Management (AUM) of Rs 52,237 crore recorded a growth of 18 per cent over the last year. As on March 31, 2018 Rs. 35,139 of the AUM was in controlled fund and Rs17,098 in ULIP funds.
-Embedded Value(EV), post final shareholder dividend, as at 31st March 2018 is Rs. 7,509 Cr.
– operating expenses (policyholders) to grosspremium ratio improved from 14.8 per cent in FY17 to 12.9 per cent in FY18 and the cost (Commission plus policyholders operating expenses) to gross premium ratio improved from 23.5 per cent FY17 to 20 per cent in FY18,
-Solvency Ratio of 263%, significantly higher than the regulatory requirement of 150%, indicating the Company’s strong and stable financial position,