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Max Life Insurance H1 FY 2013 PBT Up 6% to Rs. 398 Crore


New Delhi, Delhi, India, Thursday, November 15, 2012 -- (Business Wire India)

-- Records Gross Premium of Rs. 2,901 crore

-- Market Share amongst private life insurers at 9.5% on Adjusted Individual FYP

-- Records 30% growth in AUM to Rs. 19,184 crore

-- Solvency Margin 554% post its maiden shareholders' interim dividend

Max Life Insurance, India's leading life insurance company today announced its audited half yearly results for the Financial Year 2012 -13. The Company continued its profitable growth and recorded net profit before tax of Rs.398 crore up 6% while the gross revenue recorded a marginal increase of 1% to Rs. 2,901 crore. The Company also performed well on other parameters like Assets Under Management that increased by 30% to Rs. 19,184 crore over last year and sum assured that touched Rs.158,054 crore, an increase of 7%. The Company announced the maiden shareholders' dividend entailing distribution of Rs 115 crore, based on the performance of the company during the first half of the Financial Year 2012-13. Post dividend the Company has the solvency margin of 554%, which clearly indicates its strong and stable financial position.

Commenting on the performance of the company, Mr. Rajesh Sud, CEO & Managing Director, Max Life Insurance said "I am happy that we continued our consistent financial performance in the first half of the year. While the economic and regulatory challenges continued, we continued to perform well due to our continued focus on building a successful and differentiated life insurance business to deliver the core value of long-term savings and protection in a Life Insurance contract. We are confident of a sustained profitable growth for Max Life Insurance as we continue to differentiate in the market place basis our advice based sales, diversified distribution channel, comprehensive product portfolio and superior customer experience through superior claims and complaint management. "

Half Yearly (H1 FY) 2012-13 (April 2012 – September 2012) compared with H1 FY 2011-12 (April 2011 – September 2011)

Revenue

The Total Revenue for H1 FY 2012-13 increased by 1% to Rs. 2,901 crore with new business premium declining by 3.7% to Rs. 812 crore and the renewal premium recording a growth of 2.9% to Rs. 2,089 crore.

The company's conservation ratio which is amongst the highest at 77% is testimony to its commitment towards customers. Our 13th month persistency at 76% is amongst the best in the industry.

Cost Management

The Company continued to do well on cost management front in a market which witnessed deteriorating cost ratios. The cost ratio improved 110 bps to 30.65% while the Opex ratio improved 100 bps to 21.97% in H1 FY2012-13.

Net Profit

During the H1 FY 2012-13, Max Life Insurance, recorded the Net Profit before tax of Rs. 398 crore, as compared to Rs.375 crore in the same period last year, recording a growth of 6%. This rise in net profit was a result of steady revenue coupled with better productivity and cost efficiency.

Solvency Margin & Capital

The solvency margin of the company stood at 554% for H1 FY 2012-13 after provision for the first ever shareholder dividend of Rs.99 crore and the dividend distribution tax of Rs.16 crore. This significant jump in solvency margin from 456% in the same period last year indicates strong and stable capital position. Max Life Insurance maintained more than 3.5 times solvency margin as compared to the 150% solvency margin mandated by IRDA. This results in a solvency surplus of Rs.1,716 crore as on 30th September 2012 as compared to Rs.1,073 crore on 30th September 2011, a substantial growth of 60%.

The company's paid up capital (including share premium) as on September 30th 2012 was at Rs. 2,127 crore.

Sum Assured and Assets Under Management

The total sum assured increased to Rs. 1,58,054 crore recording a growth of 7%. This increase in sum assured is an outcome of the company's continued focus on long-term savings and protection.

During the first half of the Financial Year 2012-13the Assets Under Management recording a growth 30% to Rs. 19,184 crore.

Service Parameters

Max Life Insurance has enhanced its focus on customer centricity and has taken several initiatives to enhance our response to our customers. The customer complaint incident ratio has declined to xx per thousand complaints. All complaints were resolved within 14 days of receipt of complaints.

During the first quarter of the year, Max Life Insurance announced claims guarantee and is tracking well on our promises to our policyholders. 100% of death claims received on policies more than 3 year old have been paid and 98% of all death claims were paid within 10 days of receipt of relevant documents. Our efforts to further enhance the efficiency of our claims management process has resulted in Outstanding Claims Ratio coming down to 3.19% and the repudiation rate declining to 6.1%.

Brand Parameters

In the month of July 2012, the company changed its name to Max Life Insurance and continued with its Aapke Sachche Advisor advertising campaign. While the company maintained its brand awareness score of 99%, Unaided Awareness at 31% and Consideration at 29% touched an all time high score post the change of name.

About Max Life Insurance Co. Ltd. (www.maxlifeinsurance.com)

Max Life Insurance, one of the leading life insurers, is a joint venture between Max India Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max India is a leading Indian multi-business corporate, while Mitsui Sumitomo Insurance is a member of MS&AD Insurance Group, which is amongst the top general insurers in the world. Max Life Insurance offers comprehensive life insurance and retirement solutions for long-term savings and protection to thirty lakh customers. It has a country-wide diversified distribution model including the country's leading agent advisors, exclusive arrangement with Axis Bank and several other partners. Max Life Insurance is a quality business focused on delivering excellence to customers through advice based sale process, customer centric approach to business, financial stability & investment expertise and strong human capital.

To view the Results, please click on the link given below:

Half yearly results

Media contact details

Abhinav Rahul, Max Life Insurance Co. Ltd., +91 9810279666, abhinav.rahul@maxlifeinsurance.com

Contributed via: Bloomberg Publisher WEB Service

Provider ID: 598c11b1a06a4bcab276b504459c3b33

-0- Nov/16/2012 04:48 GMT

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