Max Financial Services (MFSL) gained 1.26% to Rs 737.90 after the company's consolidated net profit jumped 53.9% to Rs 227.13 crore on a 67.5% rise in total income at Rs 8,990.28 crore in Q3 December 2020 over Q3 December 2019.
Consolidated profit before tax (PBT) surged 57.7% to Rs 279.54 crore in Q3 December 2020 as against Rs 177.25 crore in Q3 December 2019. Current tax expenses for the quarter soared 73.7% to Rs 50.38 crore as against Rs 29 crore in Q3 December 2019. The Q3 result was declared during trading hours today, 9 February 2021.
In Q3 FY21, Max Financial Services' (MFSL) sole subsidiary Max Life reported gross written premium of Rs 4,629 crore, registering a 19% growth over the previous year. Shareholders' PAT stood at Rs 220 crore, rising 43% over the previous year, due to higher investment income and reserve release due to hedging of in-force protection business.
Individual adjusted sales were recorded at Rs 12,106 crore in Q3 FY21, which is 21% higher than last year, spurred by a 27% growth in bancassurance channel sales, which in turn was a result of a 32% increase in Axis bank sales. Proprietary channels sales grew by 9% in Q3 FY21, led by agency performance growth. E-commerce channel grew by 54% year-on-year (Y-o-Y) due to protection tailwinds, leading claims paid ratio and a competitive price.
Mohit Talwar, the managing director (MD) of Max Financial Services, has said that: "MFSL has had a solid quarter with our subsidiary Max Life registering impressive VNB and Individual Adjusted Sales. This has been a consequence of a consciously diverse product mix wherein Non-Par and Protection products continue to lead in sales growth and margin expansion. Our business apparatus, which was rapidly digitized as a result of a global pandemic, has played a significant role in helping Max Life continue its progression despite COVID headwinds. In fact, we gained 158 bps to maintain our private market share at nearly 11%."
"This quarter, we have also been happy to move a step closer to the conclusion of our much-anticipated deal with Axis Bank, with a CCI approval for 12% stake acquisition in Max Life by the bank and its subsidiaries Axis Capital Limited & Axis Securities Limited. We are now waiting for IRDAI's decision. Our focus in the upcoming year will be set on bringing the deal to closure as well as on furthering our digitisation agenda with equal attention to expanding proprietary sales and boosting persistency through increased renewals and collection rates," he added.
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Max Financial Services (MFS), a part of the Max Group, is the holding company for Max Life.
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