Prashant Tripathy, MD & CEO, Max Life Insurance, said that Max Life is on an expansion spree, and is implementing a comprehensive plan focused around channels, growth, new distribution buildup and product launches.
Max Life Insurance recently announced a capital raise of Rs 1,612 crore from existing shareholder Axis Bank, plans to open 100 new offices in Tier 2 cities and hire 50,000 agent advisors this fiscal.
“Our aspiration is double digit growth in new business premium this fiscal. We will grow better than the industry,” he said.
Max Life's New Business Premium (NBP) grew 25% in the first quarter to touch Rs 1,857 crore. The gross written premium was up 19% at Rs 4,871 crore.
“We are in a rush to expand our distribution, be it through our own channels, in partnership, online, or through new banks, because we believe that India has significant potential,” Tripathy said.
On the distribution front, Tripathy noted that Max Life had acquired five banks, 10 brokers and two corporate agents. “There is a lot of energy that will go towards ensuring that all these relationships start to take shape, we are going to work closely with our bank partners, Axis Bank as well as Yes Bank, to find opportunities for growth,” he said.
Tripathy said that the Rs 1,612 crore infusion from Axis Bank should be seen as growth capital.
“We expect all regulatory clearances for the Axis deal to be in place in the next six months. This will take our solvency from 188% to 227%. Besides this Axis deal, we are not looking to raise capital from any other source in the next two years,” he added.
Tripathy, however, noted that Max Life does need capital of about Rs 3,000 Rs4000 crore over the next four to five years to fund the company's growth.
“We will have enough capital for our growth at least for the next couple of years. In Axis we have a strong shareholder, who has shown its willingness to invest in Max Life Insurance at fair market value,” he said.
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