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Max Financial services reports Q3 consolidated revenues of Rs. 4,124 cr., growing 12%

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(MFS) today announced its financial results for the third quarter of financial year 2018-19 (Q3 FY2019). MFS, the holding company of (Max Life), India's largest non bank-owned life insurer, reported consolidated revenues of Rs. 4,124 Cr., growing 12% over the previous year.

The company's consolidated revenue for the first nine months (9M) of FY19 stood at Rs. 11,292 Cr., growing 16%, while the Shareholders' Profit before tax fell marginally by 4% to Rs. 375 Cr. due to planned investments in FY19 towards proprietary channel growth initiatives.

MFS' sole operating subsidiary reported revenues of Rs. 4,113 Cr., growing 12% over the corresponding quarter last year. The also reported its Embedded Value (EV) based on market consistent methodology (MCEV) at Rs. 8,254 Cr., with an Operating Return on EV (RoEV) of 18.8%. The Value of New Business[2] (VNB) written during the quarter was Rs. 466 Cr., growing 37% over the previous year while the New Margin[3] (NBM) stood at 22.8%. The higher VNB was a result of higher sales of as well as higher NBM's in the protection In addition, the key health vectors for the business such as conservation ratio, persistency, continued to be top quartile in the industry.

As per the Regulatory and Development Authority (IRDA) Annual Report for 2018, has recorded its highest ever Claims Paid Ratio of 98.26%.

Max Life's Assets under Management, as on 31st Dec 2018, were Rs. 58,397 Cr., 16% higher than the previous year. Despite a high base effect in 2018, Max Life in Q3 posted individual adjusted growth of 13%, outpacing the private industry growth of 10%. Proprietary channels continued to outperform bancassurance on growth, basis 9M YTD, with proprietary sales growing by 30% while banca sales also grew at a healthy 17%.

Commenting on MFS' performance, Mr. Rahul Khosla, President, and Chairman, said, "Our operating subsidiary, Max Life's financial results this quarter show an all-round improvement across metrics. The company delivered robust performance amongst listed players while outpacing industry growth, with its private market share increasing by 65 basis points for 9M YTD. We also set a higher benchmark for ourselves by achieving our highest claims paid ratio ever. While all our distribution channels exhibited a healthy growth, the outshone with a growth of 76% in sales. Going forward, we plan to continue our focus on proprietary initiatives to deliver on our planned expansion agenda."

Mohit Talwar, Managing Director, Max Financial Services Ltd. said, "With Individual Adjusted Sales growing by 21% in the nine months and a robust 35% in January, Max Life continues to flourish and cement its position as one of the country's leading life insurers. While the New Business (Total FYP) growth of 17% and a VNB growth of 37% continue to reflect our existing strengths, we will pay special attention to new business development and increased profitability. Our aim now remains set on achieving 25%-25%-25% Sales growth, New Business Margin, and Return on Embedded Value, respectively, over the next three years." This story is provided by NewsVoir.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, February 11 2019. 17:10 IST
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