Max Life, the sole operating subsidiary of Max Financial Services has reported 15% growth in revenues to Rs 3544 crore in Q1FY2020. However, the PBT declined 16% to Rs 77 crore in Q1FY2020.

The gross written premium income of the company has increased 14% to Rs 2651 crore. The first year premium collection improved 21% to Rs 646 crore, while renewal premium income increased 12% to Rs 1740 crore in Q1FY2020. The Company's Individual APE grew 23% over the last year to Rs 679 crore.

The Value of New Business (VNB) written surged 33% to Rs 134 crore in Q1FY2020 from Rs 101 crore in Q1FY2019. The New Business Margin (NBM) expanded 150 bps to 24.9%.

The life insurance business reported its Embedded Value (EV) based on market consistent methodology (MCEV) at Rs 9314 crore compared with Rs 9257 crore end March 2019 and Rs 7645 crore end June 2018.

The Operating Return on EV (RoEV) stood at 14.8% in Q1FY2020 compared with 15% in Q1FY2019.

Assets under Management moved up 18% to Rs 63877 crore end June 2019 from Rs 53940 crore end June 2018.

Max Life's proprietary channel sales were recorded at Rs 228 crore, a growth of 16% over the previous year. The e-commerce sales were up 49%, owing to growth in organic leads while the CAT channel recorded 42% growth.

Max Financial Services and MSI are 74:26 joint venture partners in India's fourth largest private Life Insurer Max Life Insurance Company.

The Board of the company has approved a preferential issuance, which will allow Mitsui Sumitomo Insurance (MSI) to swap 19.98% of its shareholding in Max Life with 21.45% stake in Max Financial Services. The transaction will also provide Max Financial Services an option to purchase from MSI, its balance shareholding of 5.24% of the equity share capital of Max Life for cash at a price of Rs 80.89 per share.

The transaction structure will involve MSI subscribing 7,35,51,029 shares of Max Financial Services having a par value of Rs 2 each at a price of Rs 421.67 per share aggregating to 21.45% of the paid-up equity share capital of the Company on the date of allotment of the aforesaid fresh shares. In consideration, Max Financial Services will receive 38,33,92,784 shares of Rs 10 each from MSI at a price of Rs 80.89 per share translating into 19.98% stake of Max Life. Pursuant to this, the equity stake held by Max Financial Services in Max Life will increase from 71.79% to 91.77%.

Embedded value per share of the company stood at Rs 345.7 per share end June 2019.