Max Financial Services Limited (MFS) today announced its financial results for the quarter and half year ended September 30, 2019.
MFS, the holding company of Max Life Insurance (Max Life), India's largest non bank-owned life insurer, reported consolidated revenues of Rs 8,635 Cr for H1FY20, growing 10 per cent over the previous year. MFS PAT for the period was at Rs 119 Cr, down 25 per cent over the previous year due to shift in product mix towards Non-Participating (Non-PAR) products and investments in proprietary channels.
MFS' sole operating subsidiary Max Life continued its strong performance in H1FY20, reporting revenues of Rs 8,216 Cr, growing 15 per cent. The Value of New Business (VNB) written during H1FY20 is Rs 364 Cr, growing 25 per cent over the previous year, as a result of shift in the product mix towards Non-PAR business while the New Business Margin was 24.6 per cent. The business also reported its Embedded Value (EV) based on market consistent methodology (MCEV) at Rs 9,745 Cr, with an Operating Return on EV (annualised) at 18.3 per cent.
Individual adjusted sales stood at Rs 1,717 Cr, growing 22 per cent over the past year, driven by growth in proprietary and bancassurance channels.
Max Life's focus on proprietary channel continued to show stellar results. The channel's sales grew 18 per cent to Rs 577 Cr in H1FY20 and grew 22 per cent to Rs 349 Cr in Q2FY20.
Max Life's Assets under Management at Sep'19 end were Rs 65,425 Cr, 17 per cent higher than the previous year, led by growth of 19 per cent in controlled fund and 12 per cent in UL fund. Shareholders' profit before tax was at Rs 170 Cr, 39 per cent lower than last year due to increase in Non-PAR business and investments in future growth Industry-wise, the Life Insurance industry grew by 11 per cent in H1FY20 while the private life insurance sector grew by 16 per cent.
"Max Life has delivered on most of its financial parameters in H1FY20. Max Life outperformed the private industry growth by over 6 per cent in the first half of the financial year. Going forward, our focus will be on strengthening the protection business, enhancing current products, successful execution of the agency excellence program with New York Life consultants as well as consistent business development efforts," said Mohit Talwar, Vice Chairman, Max Group & Managing Director, Max Financial Services.
This story is provided by NewsVoir. ANI will not be responsible in any way for the content of this article.