MFSL Consolidated Revenue grows 12 per cent in 9MFY23; Max Life Records Highest Ever Quarterly New Business Margin of 39.2 per cent in Q3FY23

MFSL Consolidated Revenue grows 12 per cent in 9MFY23; Max Life Records Highest Ever Quarterly New Business Margin of 39.2 per cent in Q3FY23

Feb 01, 2023

Noida (Uttar Pradesh) [India], February 1 (ANI/NewsVoir): Max Financial Services Limited (MFSL) today announced its financial results for the third quarter (Q3) and nine months (9M) of the financial year of FY23. In the 9MFY23, MFSL reported consolidated revenues of Rs 21,497 Crore, 3 per cent lower than the previous year, due to lower investment income. Excluding investment income, the consolidated revenues^ at Rs 15,890 Crore, grew 12 per cent. Consolidated PAT at Rs 399 Crore in 9MFY23, up 129 per cent, due to lower new business strain than the corresponding previous period. In Q3FY23, Consolidated Revenue at Rs 8,898 Cr, up 28 per cent and Consolidated PAT at Rs 269 Cr, up 196 per cent.
During 9MFY23, Max Life New Business Premium* grew 7 per cent to Rs 5,640 Cr. driven by strong growth in proprietary channels. Proprietary channels new business premiums grew by 19 per cent year-on-year to Rs 1,262 Crore as result contribution of Proprietary channels to total new sales increased from 28 per cent in 9MFY22 to 34 per cent in 9MFY23. Further, the renewal premium income rose 16 per cent to Rs 10,548 Crore, taking the gross written premium Rs 16,188 Crore, up 12 per cent year-on-year.
Results Highlights 9MFY23:
- Max Financial completed acquisition of 5.17 per cent stake of Max Life from MSI in Dec'22, post-acquisition Max Financial shareholding in Max Life increased to 87 per cent
- Agreements amended with Axis Bank for the right to acquire balance 7 per cent stake sale of Max Life at Fair Market Value
- New Business Premium*: Rs 5,640 crore, Up 7 per cent, Proprietary channels grew 19 per cent
- Embedded Value at Rs 15,547 crore; Operating RoEV improved by 140 bps to 19.5 per cent.
- New Business Margin (NBM) at 31.8 per cent, Up 670 bps
- Value of New Business at Rs 1,179 crore, Up 25 per cent
- Assets Under Management (AUM) at Rs 1,18,400 Cr., Up 16 per cent
Max Life achieved the highest New Business Margin (NBM) of 31.8 per cent in 9MFY23, improved by 670 bps over the corresponding previous period. Further NBM expanded to 39.2 per cent in Q3FY23, an increase of 1430 bps quarter mainly driven by higher non-participating product mix. Value of New Business (VNB) grew by 25 per cent to Rs 1,179 Cr in 9MFY23 and by 50 per cent to Rs 593 Crore in Q3FY23. Max Life policyholders cost to gross premium ratio improved from 21.4 per cent in 9MFY22 to 20.4 per cent in 9MFY23 due to effective cost management efforts and higher business growth. Max Life reported an Embedded Value of Rs 15,547 crore, while the Operating Return on EV (RoEV) in 9MFY23 improved by 140 bps to 19.5 per cent. During 9MFY23, Max focused on retirement segment led to growth of 300 per cent in Annuity business in 9MFY23. Max Life's assets under management (AUM) were Rs 1,18,400 crore as on December 31, 2022 - a rise of 16 per cent over the previous period.
Max Life Pension Fund Management Limited commenced business operations in Q2FY23, and also received PoP license which will support further growth.
Max Life has secured a new banca partnership with Ujjivan Small Finance Bank and 2 new renowned Broker partnerships in Q3FY23.
Prashant Tripathy, Managing Director, Max Life Insurance Company Limited, said, "Through the introduction of new innovative products, secular growth across proprietary channels, and a balanced product mix, we achieved a strong growth in Q3FY23. In addition to accelerate bancassurance channel growth, we are focused on continuous growth through strategic partnerships and improved market share."
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 87 per cent majority stake in Max Life Insurance, India's largest non-bank, private life insurance company. The company is listed on the NSE and BSE. Besides an 11.5 per cent holding by Analjit Singh and sponsor family, some of the other group shareholders include MSI, Ward ferry, New York Life, GIC, Baron, Vanguard, Jupiter, Blackrock, etc.
Max Life is the sole operating subsidiary of Max Financial Services Limited. Max Life - a part of Max Group, an Indian multi-business corporation - is India's largest non-bank private life insurer and the fourth largest private life insurance company.
On April 6, 2021, Axis Bank Limited, India's third-largest private sector bank, together with its subsidiaries Axis Capital Limited and Axis Securities Limited (collectively referred to as "Axis Entities") became the co-promoters of Max Life. This was after completion of the acquisition of 12.99 per cent stake collectively by the Axis Entities in Max Life. Max Life offers comprehensive protection and long-term savings solutions, through its multichannel distribution including agency and third distribution partners. Max Life has built its operations over almost two decades through a need-based sales process, a customer-centric approach to engagement and service delivery and trained human capital. It has 346 branch units across India.
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