New Delhi [India]: Max Financial Services Limited (MFS) announced its financial results for the third quarter of the financial year 2019-20 (Q3FY20).
MFS, the holding company of Max Life Insurance (Max Life), India’s largest non-bank-owned life insurer, reported consolidated revenue of Rs 5,366 crores, growing 19 per cent over the previous year while nine months (9MFY20) consolidated revenue stood at Rs 14,000 crores, and growing 13 per cent. Profits after Tax for Q3FY20 grew at a robust 168 per cent to Rs 105 crores over the previous year while for 9MFY20, it grew at 38 per cent to Rs 181 crores, due to one-off gain from successful transition in hedging strategy from Interest Rate Swap (IRS) to Forward Rate Agreement (FRA), aided by higher investment income partly offset by shift in product mix towards NPAR savings and investments in proprietary channels.
Max Life continued its strong performance in Q3FY20, reporting 14 per cent revenue growth to reach Rs 4,688 crores. The shareholders’ profit after tax for Q3FY20 grew by 92 per cent to Rs 154 crores due to one-off gain from the successful transition in hedging strategy from IRS to FRA, aided by higher investment income partly offset by a shift in product mix towards NPAR savings and investments in proprietary channels.
In a first, Max Life’s Embedded Value (EV) based on market consistent methodology (MCEV) crossed the Rs 10,000 crores mark at Rs 10,077 crores, with an operating return on EV (annualised) at 18.4 per cent.
The Value of New Business (VNB) written during the first nine months of FY20 was Rs 576 crores growing 24 per cent over the previous year, arising from the shift in product mix towards Non-PAR products. The New Business Margin was 21.0 per cent, increasing 60 bps over last year.
Individual APE for Q3FY20 stood at Rs 1,000 crores, increasing 16 per cent over the past year, driven by growth in proprietary and bancassurance channels, while other channels too continued to deliver robust sales.
Max Life’s Proprietary channel recorded sales of Rs 309 crores in Q3FY20, growing 19 per cent over the previous year and continued to grow faster than the Banca channel growth of 14 per cent.
Max Life’s Assets under Management as of December 31, 2019 were Rs 68,618 crores, 18 per cent higher than the previous year.
Max Life outperformed the Indian private life insurance industry (16 per cent growth) by 4 per cent in 9MFY20.
“Max Life continues to tread on the trajectory of outstanding financial performance. Not only has it surpassed expectations on most financial metrics, but it has also outpaced the private Life Insurance industry growth by 4 per cent in the first nine months of the current financial year”, said Mohit Talwar, Vice Chairman, Max Group & Managing Director, Max Financial Services.
“Due to its strong focus on creating a comprehensive channel mix, Max Life was able to add eight partners for our individual and group business in the third quarter of FY2020”, added Mohit.
“Going forward, we will continue our focus on growing the protection business, seamlessly executing the agency excellence program in tandem with New York Life consultants, and further enhancing our business development endeavours”, he further added.
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