Max Financial Services Ltd. (MFSL) today announced its financial results for the quarter and half year ended September 30th, 2020. In Q2 FY21, MFSL’s consolidated revenues1 were at Rs. 7,020 Cr., growing 50% year-on-year due to higher investment income. Consolidated PAT1 grew 26% to Rs. 81 Cr. due to reversal of impairment loss on investments.
In Q2 FY21, Max Life2 reported Shareholders’ PAT of Rs. 26 Cr., down 70% over the previous year due to a higher new business strain owing to higher non-par and protection sales, partially offset by higher investment income. This shift also boosted New Business Margins and Value of New Business.
Max Life gained 162 bps to reach a private market share of 11% in H1FY21, which was the highest in last 10 years in H1. Max Life reported a Market-Consistent Embedded Value (MCEV) of Rs. 11,047 Cr., in H1 FY21, with an Operating Return on Embedded Value (RoEV) of 17.5%. The Value of New Business (VNB) written during H1 FY21 was Rs. 438 Cr., growing 20% year-on-year and New Business Margin (NBM) stood at 24.2%, expanded by 320 bps over last year, arising from shift in product mix towards NPAR – Savings and protection products. Individual protection grew by 78% year-on-year and penetration increased to 12% in H1FY21 compared to 7% in H1FY20. Renewal Premium grew 16% to Rs. 4,789 Cr. In this period Max Life’s Assets under Management (AUM) stood at Rs. 77,764 Cr., growing 19% year-on-year.
Max Life’s Individual APE for Q2FY21 were recorded at Rs. 1,144 Cr., grew 10%, driven by Bancassurance sales growth of 19%. E-commerce channel grew by 68% year-on-year due to protection tailwinds, leading claims paid ratio and a competitive price. In fact, Max Life maintained a leadership position in direct website purchase and web aggregators.
Mohit Talwar, Vice Chairman, Max Group & Managing Director, Max Financial Services, said, “Despite the prolonged headwinds caused by a global pandemic, Max Life has clocked in an overall growth of 4%, with an impressive surge in its e-commerce sales and those in bancassurance. This further solidifies our focus on bolstering our digital channels while we build up sales in our proprietary and agency channels. The Company also continues to maintain its top position among competitors with an unprecedented 11% private market share – the highest in the last decade.”