Max Life Insurance reported a marginal 1% drop in net profit in its half yearly results for the financial year 2012-2013. The net profit (profit after taxes) stood at Rs 372 crore for the half year period ended September 2012, compared to Rs 375 crore during the same period last year. The company attributed this marginal drop in net profit to the fact that the company did not make a taxable profit last year and hence did not pay taxes. According to the company, since they made a taxable profit this year, it paid a tax of Rs 26 crore, leading to the slight drop in net profit.
The company recorded a marginal increase of 1% in its gross revenue, which now stands at Rs 2,901 crore respectively. The Assets Under Management (AUM) collected by the insurer increased by 30% over last year to Rs 19,184 crore and sum assured touched Rs 1.58 lakh crore showing an increase of 7% for the same period.
The solvency margin of the company stood at 554% for H1 FY 2012-13 after provision for the first ever shareholder dividend of Rs.99 crore and the dividend distribution tax of Rs.16 crore. The company’s paid up capital (including share premium) as on September 30th 2012 was Rs 2,127 crore.
The insurance company announced the maiden shareholders’ dividend entailing distribution of Rs 115 crore, based on the performance of the company during the first half of the Financial Year 2012-13.
Rajesh Sud, CEO & Managing Director, Max Life Insurance said "We are confident of a sustained profitable growth, as we continue to differentiate in the market based on advice based sales, diversified distribution channel, comprehensive product portfolio and good customer service.”
