Max Life Insurance
Max Life Insurance

Max Life records strong profitable growth - value of new business up 42%

ANI | Updated: Nov 15, 2018 16:08 IST

New Delhi [India], Nov 15 (NewsVoir): Max Life Insurance Company Ltd. ("Company") one of India's leading life insurance companies, recorded a strong profitable growth in the first half of the Financial year 2018-19 with Value of New Business (VNB) increased by 42% to Rs. 290 crore due to a significant growth in new business as well as higher share of protection products.
A strong focus of the Company on proprietary channels led to a 33% growth in new business from these channels in H1 FY19 over H1 FY18. Gross written premium of the Company grew by 17% to Rs. 5,619 crore, while the new business premium grew by 21% to Rs. 1,909 crore and the renewal premium recorded growth of 15% to Rs. 3,711 crore in H1 FY19 over H1 FY18.
During this period Individual Annualised Premium Equivalent (APE) went up to Rs. 1,405 crore, recording a growth of 26%. As on 30th September 2018, the Embedded Value (post interim shareholder dividend) stood at Rs. 7,752 crore, with an Operating Return of Embedded Value (RoEV) of 18.5%.
The Board of Directors of Max Life Insurance in a board meeting held on 25 October 2018, approved an interim dividend of Rs. 282 crore (including dividend distribution tax).
"The growth in our number of offices in the first half of the financial year FY19 is further proof of this commitment. Protection continues to be another key priority where Max Life has performed well with nearly one-third of our new customers buying pure protection policies. Our Net Promoter Score (NPS) of 32 for H1 FY19, showcasing an increase of 6 points in the last 6 months, is a testament to the Company's strong focus on customer centricity. One of the strategic priorities for Max Life is to deploy digital technologies and analytics models across the life insurance value chain to achieve best in class customer experience and efficiency in our operations," said Prashant Tripathy, Senior Director and Chief Financial Officer, Max Life Insurance.
Max Life Insurance has performed well on all key business parameters during H1 FY19:
New Business Premium at Rs. 1,909 Crore, recorded growth of 21% as compared to H1 FY18 while increasing the market share to 9% amongst private life insurers.
33% growth in proprietary channels over H1 FY18 with a 35% share of the overall distribution mix.
30% policies sold during H1 FY19 were pure protection policies, with a YoY growth of 56%. E-commerce channel contributed to 13% of total policies sold in H1 FY19.
Shareholder's profit (Pre Tax) recorded an increase of 17% to Rs. 276 crore in H1 FY19 from Rs. 236 crore in H1 FY18.
Solvency Ratio of 262% (pre dividend), which is significantly higher than the regulatory requirement of 150%, indicating the Company's strong and stable financial position.
The company recorded 13th month persistency of 83.9% and 61stmonth persistency of 54.5% in H1 FY19, up by 230 bps and 110 bps respectively as compared to H1 FY18.
Assets Under Management (AUM) increased by 17% YoY to Rs. 56,070 crore.
Sum Assured has increased by 42% to Rs. 6,16,528 crore in H1 FY19 from Rs. 4,35,524 crore in H1 FY18.
Max Life customers have reaffirmed their trust and faith in the Company which is reflected in significant growth in customer retention. Over the first half of the year, renewal premium has grown over 15% in H1 FY19 over same time last year, the 13th month and 61st month persistency rates have witnessed a growth of 230 bps and 110 bps respectively. (NewsVoir)