Max Financial Services (MFSL) declined 2.35% to Rs 1,041.25 after the private insurer posted an 80% fall in net profit to Rs 36 crore in Q1 FY22 from Rs 181.53 crore registered in Q1 FY21.
The insurance firm said a sharp fall in net profit was on the back of lower operating expenses, lower death claims due to COVID-19 induced lockdown and one-off tax refund in the previous year. In the quarter under review, Max Financial reported consolidated revenue (excluding investment income) of Rs 3,420 crore, registering a growth of 27% from the year-ago period.During the first quarter of FY22, Max Life delivered a strong performance on new business premiums (on APE basis) as it achieved a 32% jump to Rs 875 crore from Rs 661 crore in the year-ago period. Further, the renewal premium income (including group) rose 21% to Rs 2,244 crore, taking the gross written premium to Rs 3,484 crore, a spurt of 27% over the first quarter of the previous financial year.
The insurance company said that the claim experiences were higher than expected across all lines of businesses with significantly higher variance for Protection and Group businesses.
MFSL's sole operating subsidiary, Max Life, registered a 28% increase in total revenues at Rs 4,626 crore in the period under review. The Individual Sum Assured of New business reported a 13% decline in Q1FY22 due to de-growth in protection business while the market share improved to 16.1%.
The New Business Margin (NBM) for Q1FY22 was at 19.7% (at actual costs), an increase of 260 basis points from 17.1% posted in Q1 FY21 guided by a change in business mix. Further, this aided a 53%- growth in the value of new business (VNB) which came at Rs 172 crore. The higher growth in VNB was due to higher sales and change in business mix. Max Life reported an Embedded Value (EV) of Rs 12,290 crore, registering an uptick of 15% from Rs 10,670 crore posted in the year-ago period driven by growth in value of new business and quality of inforce business.
In Q1FY22, Max Life's assets under management (AUM) was at Rs 93,697 crore, a rise of 28% over the year-ago period.
Mohit Talwar, MD of Max Financial Services said, Strong focus towards customer measures has helped deliver superior performance across health parameters and will continue to remain an important priority due to the impact of the second wave of the COVID19. Our partnership with Axis Bank after the conclusion of the deal in April and the longstanding bancassurance with YES Bank helped partnership channels grow 52% in the first quarter of FY22.
Max Financial Services is part of India's leading business conglomerate - the Max Group. Focused on Life Insurance, MSFL owns and actively manages an 81.83% majority stake in Max Life Insurance, India's largest non-bank, private life insurance company.
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