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Max Financial Services, the holding company of Max Life Insurance (Max Life) - India's largest non bank-owned life insurer, reported 168% surge in the net profit to Rs 105.22 crore in the quarter ended December 2019. The consolidated revenues of the company moved up 19% to Rs 5365.74 crore in Q1FY2020.
Max Financial Services reported consolidated revenue of Rs 5366 crore, growing 19% over the previous year while nine months (9MFY20) consolidated revenue stood at Rs 14000 crore, growing 13%. Profits after Tax for Q3FY20 grew at a robust 168% to Rs 105 crore over the previous year while for 9MFY20, it grew at 38% to Rs 181 crore, due to one-off gain from successful transition in hedging strategy from Interest Rate Swap (IRS) to Forward Rate Agreement (FRA), aided by higher investment income partly offset by shift in product mix towards NPAR savings and investments in proprietary channels.
Max Life continued its strong performance in Q3FY20, reporting 14% revenue growth to reach Rs 4688 crore The Shareholders' Profit after Tax for Q3FY20 grew by 92% to Rs 154 crore due to one-off gain from successful transition in hedging strategy from IRS to FRA, aided by higher investment income partly offset by shift in product mix towards NPAR savings and investments in proprietary channels.
In a first, Max Life's Embedded Value (EV) based on market consistent methodology (MCEV) crossed the Rs 10000 crore mark at Rs 10077 crore, with an Operating Return on EV (annualised) at 18.4%. The Value of New Business (VNB) written during the first nine months of FY20 was Rs 576 crore, growing 24% over the previous year, arising from the shift in product mix towards Non-PAR products. The New Business Margin was 21.0%, increasing 60 bps over last year.
Individual APE for Q3FY20 stood at Rs 1000 crore, increasing 16% over the past year, driven by growth in proprietary and bancassurance channels, while other channels too continued to deliver robust sales. Max Life's Proprietary channel recorded sales of Rs 309 crore in Q3FY20, growing 19% over the previous year and continued to grow faster than the Banca channel growth of 14%.
Max Life's Assets under Management were Rs 68618 crore end December 2019, 18% higher than the previous year.
Max Life outperformed the Indian private life insurance industry (16% growth) by 4% in 9MFY20.
Embedded value per share of the company stood at Rs 373.9 per share end December 2019.
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