Max Life net profit at Rs 808 crore for 2012-13

The gross written premium for 2012-13 up 4% from 2011-12 to Rs 6,639 cr

Max Life Insurance has reported a net profit of Rs 808 crore for 2012-13. The profit before tax was Rs 860 crore, a rise of 17 per cent as compared to FY12.

The company said the rise was a result of continued revenue growth, coupled with better productivity and cost efficiency. In FY12, its net profit was Rs 733 crore.

However, the figures are not comparable, as it did not have a tax obligation in 2011-12. The shareholders profit before tax for 2012-13 was Rs 475 crore, as compared to Rs 460 crore in FY12.

The gross written premium for 2012-13 rose four per cent from 2011-12 to Rs 6,639 crore.

A six per cent increase was witnessed in renewal premium to Rs 4,739 crore, while first-year premium collection remained stable at Rs 1,899 crore. The 13th month persistency ratio saw a rise of 100 basis points and stood at 76 per cent.

Rajesh Sud, managing director, said: “Our continued focus on fundamentals and efforts to differentiate in the marketplace, based on our advice-based sales, diversified distribution architecture and comprehensive product portfolio helped us achieve a profitable growth in a tough year for the industry. Our company has progressed well on all business parameters and we have further strengthened our position as the largest non-bank owned private life insurer.”

He said there would be growth in the first half of the current financial year. In the second half, all insurers  would have to manage the regulatory changes, with the new guidelines for traditional products taking effect during this period.

The cost ratio was 28 per cent in FY13, compared to 30 per cent in FY12. The company announced a year-end dividend of Rs 159 crore. This takes the total shareholder dividend for 2012-13 to Rs 259 crore, including an interim dividend of Rs 99 crore.

On the product focus, Sud said this would remain on the individual segment, compared to the group one. Health and retirement would be the areas of growth. The company has filed its pension products with the regulator. Sud said they were also looking at the possibility of having co-products on the health segment with Max Bupa Health Insurance.

Max Life’s solvency ratio was 521 per cent at end-March, more than three times the minimum regulatory mandated ratio of 150 per cent. The company maintained its paid-up capital (including share premium) as on March 31 at Rs 2,127 crore and assets under management increased to Rs 20,458 crore, a growth of 19 per cent.