Max Financial net profit jumps 54% to Rs 227 cr in December quarter

Max Financial Services Ltd reported 54 per cent jump in its consolidated net profit to Rs 227 crore in the third quarter ended December 2020

Max Financial Services Ltd (MFSL) on Tuesday reported 54 per cent jump in its consolidated net profit to Rs 227 crore in the third quarter ended December 2020.

The company's net profit stood at Rs 147 crore in the year-ago period.

The consolidated revenues soared to Rs 8,990 crore, growing 68 per cent year-on-year due to higher investment income, MFSL said in a release.

During Q3 FY21, MFSL's sole subsidiary Max Life reported gross written premium of Rs 4,629 crore, up 19 per cent over the previous year, it added.

"MFSL has had a solid quarter with our subsidiary Max Life registering impressive VNB (value of new business) and individual adjusted sales. This has been a consequence of a consciously diverse product mix wherein Non-Par and Protection products continue to lead in sales growth and margin expansion.

"Our business apparatus, which was rapidly digitised as a result of a global pandemic, has played a significant role in helping Max Life continue its progression despite COVID headwinds. In fact, we gained 158 bps to maintain our private market share at nearly 11 per cent," Max Financial Services Managing Director Mohit Talwar said.

The company has moved a step closer to the conclusion of the much-anticipated deal with Axis Bank, with the CCI approval for 12 per cent stake acquisition in Max Life by the bank and its subsidiaries, Axis Capital Limited and Axis Securities Limited, he added.

"Our focus in the upcoming year will be set on bringing the deal to closure as well as on furthering our digitisation agenda with equal attention to expanding proprietary sales and boosting persistency through increased renewals and collection rates," Talwar said.

Max group's MFSL holds 93.10 per cent stake in Max Life Insurance.

Shares of MFSL were trading 0.39 per cent up at Rs 731.60 apiece on BSE.