Max Life profit up 17% at Rs 860 cr in FY'13

Private sector Max Life Insurance today reported 17% rise in profit before tax at Rs 860 crore for the year ended March 2013.

The company had earned profit before tax of Rs 733 crore in the previous fiscal.

Its gross written premium of grew 4% to Rs 6,639 crore last fiscal, as against Rs 6,391 crore in 2011-12.

Max Life witnessed a meagre 0.4% drop in first- year premium collection at Rs 1,899 crore last fiscal.

Max Life Insurance Managing Director and CEO Rajesh Sud said: "Our company has progressed on all business parameters and we have further strengthened our position as the largest non-bank owned private life insurer."

This has been made possible due to continued focus on building a successful life insurance business to deliver the core value of long-term savings and protection, he said.

In view of a strong all round performance during 2012-13, Sud said, the company declared a total shareholder dividend of Rs 259 crore including an interim dividend of Rs 99 crore.

Considering the surplus that arose over the financial year in the participating fund, the company announced an increase in policyholder bonuses from the previous level, he said.

The total bonus that is estimated to be paid out in the 12 month period starting July 1, 2013 is Rs 297 crore, Sud said, adding that this payout is in addition to the one-time special bonus of Rs 130 crore to participating policyholder declared in January 2013.

The company, a joint venture between Max India and Mitsui Sumitomo Insurance of Japan, had Asset Under Management (AUM) of Rs 20,458 crore, an increase of 19% over the previous year.

Solvency Ratio of the company with the paid up capital at Rs 2,127 crore rose to 521%, more than 3 times the mandatory 150%.