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Max Financial Services reports Q1 revenues of Rs. 3,099cr

ANI | Updated: Aug 06, 2018 23:37 IST

New Delhi [India], Aug 6 (NewsVoir): Max Financial Services Limited (MFS) today announced its financial results for the first quarter of financial year 2018-19 (Q1 FY2019).
MFS, the holding company of Max Life Insurance (Max Life), India's largest non bank-owned life insurer, reported consolidated revenues1 of Rs. 3,099 Crore., growing 21 per cent over the previous year. The company also reported Profit before Tax of Rs. 78 Crore, 10 per cent lower compared to the previous year.
MFS' sole operating subsidiary Max Life reported revenues1 of Rs. 3,085 Crore., growing 20 per cent over the corresponding quarter last year. The business also reported its Embedded Value based on market consistent methodology (MCEV) at Rs. 7,645 Crore., with an Operating Return on EV (RoEV) of 15per cent.
The Value of New Business (VNB) (pre-cost overrun) written during the quarter was Rs. 130 Crore growing 23per cent over the previous year. The New Business Margin (NBM) stood at 23.5per cent. The post-cost overrun VNB was Rs. 101 Crore growing 17per cent over the previous year. The post-cost overrun NBM stood at 18.1per cent.
Max Life's Assets under Management, as on June 30, were Rs. 53,940 Crore, 18per cent higher compared to the previous year. Max Life currently ranks among the 5 largest fund managers among life insurers in India.
In Q1, Max Life reported Individual Adjusted Sales of Rs. 527 Crore, growing 15per cent, while Total Sales amounted to Rs. 641 Crore, growing 16per cent over last year. The business also reported a Solvency Surplus of Rs. 1,911 Crore, with a healthy Solvency Ratio of 262per cent.
Max Life has made significant strides in growing its e-Commerce business over a very short span of time. The digital and online sales channel already accounts for approximately 1 in 4 new customers being added to the company's portfolio.
"Max Life's robust performance this quarter has already laid strong foundations for growth. We plan to reinvigorate our proprietary channels by significantly adding to our agency force and offices over the next two to three years, and deepening our lead in the digital space where we are already market leaders in term plans and have also started operating in the savings space," said Rahul Khosla, President, Max Group and Chairman, Max Life Insurance.
"We are orienting our digital strategy towards affluent households in the top 50 cities as Digital customers equal an estimated 2.5 times lifetime value when compared to others. Complementing the growth expected from our strong bancassurance partnerships, and new distribution alliances we are set to deliver a market-leading growth trajectory, coupled with superior financial performance, earnings and returns," he added.
Mohit Talwar, Managing Director, Max Financial Services Ltd. said, "The quality of the business acroreoss several parameters remains top quartile. The robust growth in Embedded Value and Value of New Business reflects strong fundamentals in the existing business and a continued focus on profitable new business."
"Having achieved a 20-20-20 growth in Embedded Value, sales and margins last year itself, we have now set our aspiration to achieve 25-25-25 growth over the next three years. All our channels are delivering profitable growth powered by improved productivity and I am confident we will achieve this milestone very soon," he added. (NewsVoir)