Max Financial Services Reports Consolidated Revenues of Rs. 14,967 Cr. in FY2018

New Delhi [India], May 25 (ANI-NewsVoir): Max Financial Services Limited (MFS) today announced financial results for the year 2017-18 (FY2018).

MFS, which manages a majority stake in Max Life Insurance, India's largest non-bank, private life insurance company, reported consolidated revenues1 of Rs. 14,967 Cr., growing 15% over the previous year. The Company reported consolidated Net Profit4 of Rs. 296 Cr., 25% lower compared to the previous year.

MFS' sole operating subsidiary Max Life Insurance demonstrated broad-based growth across channels with Individual Adjusted Sales of Rs. 3,215 Cr. in FY2018, growing 22% over the previous year. This was primarily driven by improvement in productivity and increased demand for unit-linked products across channels. Max Life's Renewal Premium stood at Rs. 8,152 Cr., growing 15% over the previous year, led by efficiency improvement and various initiatives aimed at lapse recovery. Gross Written Premium in FY2018 was Rs. 12,501 Cr., growing 16% over the previous year.

Max Life also reported Market-Consistent Embedded Value2 (MCEV), of Rs. 7,509 Cr., with an Operating Return on EV (RoEV) of 20.6%. The Value of New Business (VNB) written during FY2018 was Rs. 656 Cr., growing 31% over the previous year, and the New Business Margin stood at 20.2%, 140 bps higher compared to the previous year. Max Life hit an important milestone this year with its Assets Under Management (AUM) crossing the Rs. 50,000 Cr. mark for the first time.

The AUM as at 31stMarch 2018 stood at Rs. 52,237 Cr., growing 18% over the previous year. Max Life is now the 5th largest fund manager among private life insurers in India. Max Life's AUM has grown steadily over the years, reflecting consistent performance, and a stable approach to product portfolio mix.

In Q4 FY2018, Max Life reported a strong growth of 28% in Individual Adjusted Sales, despite a high base in the same quarter last year. The Q4 Individual Adjusted Sales were Rs. 1,339 Cr. MFS reported consolidated revenues1 of Rs. 5,300 Cr. and Net Profit4 of Rs. 128 Cr. in Q4, growing a healthy 23% and 9%, respectively.

Commenting on the Company's performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, "We are pleased with Max Life's strong and consistent organic growth over the past few years. At the same time, with a healthy solvency ratio of 275% and fund-raising capabilities, we have the appetite as well as the ability to aggressively pursue inorganic growth.

Acquiring a high quality bank-owned life insurance asset would enable us to offer our product portfolio to a much wider customer base. Meanwhile, we will continue to build on our existing strengths of need based selling of long-term savings and protection products through well-balanced distribution architecture comprising bancassurance, agency and the rapidly growing digital channel."

Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd. said, "We had an aspiration of achieving 20-20-20 growth in sales, margin and EV by 2020. I am pleased to see that Max Life has outperformed itself in FY2018, achieving our three-year goal within the first year. This augurs very well for the future and in the coming months, it will be our priority to optimise market share and profitability while focusing on organic and inorganic growth opportunities." (ANI-NewsVoir)

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