Max Life records strong profitable growth in H1 FY20 – Value of New Business (VNB) up 25% to Rs. 364 crore
Highlights of all-round performance in H1 FY20 (April – Sept 2019) as compared to H1 FY19, and as on 30th September 2019
Individual Adjusted Sales up by 23% to Rs. 1,693 crore
Assets Under Management up by 17% to Rs. 65,425 crore
Sum Assured in Force increases up by 34% to Rs. 8,25,875 crore
Embedded value increased to Rs. 9,831 crore at ROEV of 18.3%
Max Life Insurance Company Ltd. (“Max Life”/Company”) has recorded a strong profitable growth in the first half of the Financial Year 2019-20 with Value of New Business (VNB) increased by 25% to Rs. 364 crore due to a significant growth in new business, both at bank partnerships and proprietary channels, as well as higher share of protection products. Gross written premium of the Company grew by 14%to Rs. 6,432 crore, while the new business premium grew by 20% to Rs. 2,291 crore and the renewal premium recorded growth of 12% to Rs. 4,141 crore in H1 FY20 over H1 FY19. During this period, Individual adjusted sales stood at Rs. 1,693 crore, growing 23% over the same period in the last financial year, which has been driven by a mix of proprietary and bancassurance channels. The Embedded Value (post interim shareholder dividend) stood at Rs. 9,831 crore, with an Operating Return of Embedded Value (RoEV) of 18.3% in H1 FY20.
The Board of Directors of Max Life Insurance in a board meeting held on 6th November 2019, approved an interim dividend of Rs. 86 crore (including dividend distribution tax).
Commenting on the performance of the Company, Mr. Prashant Tripathy, Managing Director & CEO, Max Life said, “Max Life has delivered another year of consistent business performance. We continued to deliver profitable and consistent growth. This has been driven by a focus on building proprietary channels and bank partnerships, improvements in key health parameters and enhancement of existing products.”
Max Life has performed well on all key business parameters during H1 FY20:
- Max Life outperformed the private industry growth by 674 basis points in the first half of the financial year, and improved private market share to 9.3%, basis individual adjusted first year premium.
- New Business Premium at Rs. 2,291 crore, recorded growth of 20% as compared to H1 FY19
- 18% growth in proprietary channels sales over H1 FY19 with a 33% share of the overall distribution mix for individual business (Ind. APE Basis)
- Individual Protection penetration (Ind. APE basis) YoY growth has been 32%
- Solvency Ratio estimated to be ~224% (pre-dividend), which is significantly higher than the regulatory requirement of 150%, indicating the Company’s strong and stable financial position
- The Company recorded 13thmonth persistency at 85.1% (up by 118 bps YoY)
- Assets Under Management (AUM) increased by 17% YoY to Rs. 65,425 crore
- Sum Assured in Force has increased to Rs. 8,25,875 crore in H1 FY20 from Rs. 6,16,528 crore in H1 FY19
Key Business Drivers
|
Unit
|
Half Year Ended
|
Y-o-Y Growth
| |
Sep 2019
|
Sep 2018
| |||
a) Individual APE*
|
Rs. Crore
|
1,717
|
1,405
|
22%
|
b) Gross Written Premium Income
|
Rs. Crore
|
6,432
|
5,619
|
14%
|
New Business Premium
|
2,291
|
1,909
|
20%
| |
Renewal Premium
|
4,141
|
3,711
|
12%
| |
d) Share Capital
|
Rs. Crore
|
1,919
|
1,919
| |
e) Assets Under Management
|
Rs. Crore
|
65,425
|
56,070
|
17%
|
f) Individual Policies in Force
|
No. Lacs
|
43.04
|
41.5
|
4%
|
g) Sum Assured in Force
|
Rs. Crore
|
8,25,875
|
6,16,528
|
34%
|
h) Persistency (13th Month)
|
%
|
85.1
|
83.9
|
118 bps
|
i) Persistency (61st Month)
|
%
|
52.6
|
54.5
|
-188 bps
|
A digital-adept organisation that strives towards easing its customers’ lives by offering them innovative online product solutions and customer services, Max Life has deployed an array of customer-facing digital processes that have increased the lead generation and improved response times; apart from creating efficiency in underwriting, claim processing and after-sales service. In addition, with its unique ‘InsurTech’ accelerator programme ‘Max Life Innovation Labs’, Max Life aims to address distinct business challenges and help create a strategic ecosystem geared towards bringing greater innovations to the industry. Under its ambit, the programme invites disruptive startups to create futuristic tech-based solutions for the rapidly advancing life insurance sector. By partnering with mentors like Startup India, AWS, Blume Ventures, Revstart, Venture Garage etc., the programme seeks to open greater mentoring to startups to help refine their business models, offer technology guidance, cloud credits, improve business pitches, early stage investment amongst others.
With a single-minded customer and employee obsession, Max Life is proud to be amongst the top 100 Great Places to Work 2019, and is recognised as among ‘India’s Best Workplaces for Women – 2019’ by Great Place to Work ® Institute. These recognitions underline the organisation’s pursuance of employee excellence, and a focused approach towards creating a diverse and inclusive culture.
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