Posts impressive all-round performance outperforming industry:
- Gross Premium up 8% to Rs. 2,873 crore
- Market Share amongst private life insurers up 291 bps to 9.7% on Adjusted Individual FYP
- Records 20% growth in AUM to Rs. Rs.14,708 crore
- Solvency Margin 456%
Max New York Life Insurance, India’s leading life insurance specialist today announced its unaudited half yearly results for the Financial Year 2011 -12. The company recorded 8% growth in gross revenue to Rs. 2,873 crore, profit increased 8 times to Rs. 375 crore. The Company also performed well on other parameters like sum assured which increased by 3% and asset under management crossing the Rs. 14,500 crore mark recorded a growth of 20% over H1 FY 2010 while solvency margin increased to 456%.
Commenting on the performance of the company, Mr. Rajesh Sud, CEO & Managing Director, Max New York Life Insurance said
"I am happy with our performance in the first half of the financial year. In spite of significant challenges in the market, we responded extremely well and demonstrated superior all round performance. This has been made possible due to our continued focus on building a successful and differentiated life insurance business to deliver the core value of long-term savings and protection in a Life Insurance contract. We have outperformed the industry since the regulatory changes came into effect from September 2010 and represent an extremely strong and stable performance on financial front. The Company does not require additional Capital with solvency margin at 456%”
“We are confident of a sustained profitable growth for Max New York Life as we continue to differentiate in the market place basis our advice based sales, balanced product portfolio, multi-channel distribution and superior customer experience through superior claims and complaint management. Max New York Life has now one of the lowest customer complaints incidence ratio. Our customer complaints incidence ratio was just 0.32 per thousand as on 30th September 2011. At Max New York Life 89% of the customer complaints are resolved within specified time frame and 94% of the new policies are issued within 10 days of receipt of documents. Our Outstanding Claims Ratio has come down to 6.89% as on 30th September 2011. ” he further added .
Revenue
The Total Revenue for H1 FY 2011-12 increased by 8% to Rs.2,873 crore with new business premium growing (13)% to Rs.843 Crore and the renewal premium recording a growth of 20% to Rs.2,030 crore.
In the investor community Adjusted Individual First Year Premium is the true indicator of new business success. Post 1st September 2010, after the new ULIP guidelines came into force, Max New York Life Insurance has outperformed the industry every month. Cumulatively, in this 13 month period the total industry and private insurers recorded a decline of 26% and 39% respectively while Max New York Life declined by 3%.
The company’s conservation ratio which is amongst the highest at 80% is testimony to its commitment towards customers. Our 13th month persistency at 72% is amongst the best in the industry
Cost Management
During the financial year 2010 – 2011 the company undertook cost management initiatives which had its impact during the first half of the financial year 2012 and its further impact would be visible in the second half of the financial year. The cost ratio improved 11 percentage points as compared to September 2010 to 31% in September 2011.
Net Profit
During the H1 FY 2011-12, Max New York Life Insurance, recorded the Net Profit of Rs.375 crore, from a negative 50 crore in H1 FY 2010 - 11. This impressive rise in net profit was a result of continued revenue growth coupled with better productivity and cost efficiency.
Solvency Margin & Capital
The solvency margin of the company stood at 456% for H1 FY 2012 as compared to 282% for the corresponding period previous year. Max New York Life maintained more than 2 times solvency margin as compared to the margin mandated by IRDA.
The company’s paid up capital (including share premium) as on September 30th 2011 was at Rs. 1,976 crore.
Sum Assured and Assets Under Management
The total sum assured increased to Rs. 1,47, 625 crore recording a growth of 3%. This increase in sum assured is an outcome of the company’s enhanced focus on long-term savings and protection.
During the first half of the financial year 2011-12 the Assets Under Management recording a growth 20% to Rs. 14,708 crore.
