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Max Life Insurance Enterprise Level PBT Up 17% to Rs. 860 Crore


New Delhi, Delhi, India, Wednesday, May 22, 2013 -- (Business Wire India)

Max Life Insurance posts impressive all-round performance:

Gross Written Premium up 4% to Rs. 6, 639 crore Assets Under Management up 19% to Rs. 20, 458 crore Solvency Ratio at 521%

Max Life Insurance, India's leading life insurance company, continued its profitable growth journey during the Financial Year 2012-13. The Company recorded an Enterprise level Profit Before Tax of Rs. 860 crore, up 17% over the previous financial year, while the Shareholder Profit Before Tax increased to Rs. 475 crore. Gross Written Premium of the Company grew 4% to Rs. 6, 639 crore. In view of a strong all round performance during FY 2012-13, the Company declared a Total Shareholder Dividend of Rs. 259 crore and a Bonus of Rs. 297 crore to participating policyholders, a 5-7.5% upward revision from previous year.

Max Life Insurance also performed well on other business parameters:

-- Assets Under Management increased by 19% to Rs. 20,458 crore

-- Sum Assured at Rs. 1,69,167 crore, recorded an increase of 11% over the previous financial year

-- Solvency Ratio of 521%, more than 3 times the mandatory 150%, indicates the Company's strong and stable financial position

Max Life Insurance's strong customer centric approach has resulted into a strong financial performance:

-- One of the lowest customer complaints incidence at 0.20 complaints per thousand policies

-- 94.3% of all claims were paid during the year amounting to Rs. 233 crore; only 0.09% claims pending decision

-- Conservation ratio at 81%, continues to be one of the best in the industry

Commenting on the performance of the company, Mr. Rajesh Sud, CEO & Managing Director, Max Life Insurance Co. Ltd. said:

"I am delighted that Max Life Insurance performed well on all parameters while coping with the changing business and regulatory environment. Our continued focus on fundamentals and efforts to differentiate in the market place based on our advice based sales, diversified distribution architecture and comprehensive product portfolio helped us achieve a profitable growth in a tough year for the industry. The quality of our business is also evident from the fact that our 13th month persistency improved by 100 basis points.

Our company has progressed well on all business parameters and we have further strengthened our position as the largest non-bank owned private life insurer. This has been made possible due to our continued focus on building a successful life insurance business to deliver the core value of long-term savings and protection.”

Financial Year (FY) 2012-13 (April 2012 – March 2013) compared with FY 2011-12 (April 2011 – March 2012)

REVENUE

The Gross Written Premium for FY 2012-13 increased by 4% to Rs. 6, 639 crore. A 6% increase was witnessed in renewal premium to Rs. 4, 739 crore while first year premium remained stable at Rs. 1, 899 crore. The Company's conservation ratio at 81% is testimony to Max Life Insurance's commitment towards its customers.

COST MANAGEMENT

The Company undertook cost management initiatives over the last couple of years with a long-term impact perspective. This resulted in the cost ratio improving 190 basis points to 28% in FY 2012-13 from 30% in FY 2011-12.

PROFIT BEFORE TAX

During the FY 2012-13, Max Life Insurance, recorded an Enterprise level Profit Before Tax of Rs. 860 crore, an increase of 17% as compared to FY 2011-12. The Shareholders Profit Before Tax for the same period stood at Rs. 475 crore as compared to Rs. 460 crore in FY 2011-12. This rise in profit was a result of continued revenue growth coupled with better productivity and cost efficiency.

TOTAL SHAREHOLDERS DIVIDEND

Max Life Insurance announced a year-end dividend of Rs. 159 crore. This takes the total shareholders dividend for FY 2012-13 to Rs. 259 crore, including an interim dividend of Rs. 99 crore. Max India, Mitsui Sumitomo and Axis Bank are entitled to a total dividend of Rs. 184 crore, Rs. 67 crore and Rs.8 crore respectively.

POLICYHOLDER BONUS

Considering the surplus that arose over the financial year in the participating fund, Max Life Insurance announced an increase in policyholder bonuses from the previous level. The total bonus that is estimated to be paid out in the 12 month period starting 1st July 2013 is Rs. 297 crore. This payout is in addition to the one-time special bonus of Rs. 130 crore to participating policyholder declared in January 2013.

SOLVENCY RATIO AND CAPITAL

Max Life Insurance's solvency ratio stood at 521% as at 31st March 2013, more than three times the minimum regulatory mandated ratio of 150%.

The Company maintained its paid up capital (including share premium) as on 31st March 2013 at Rs.2, 127 crore.

ASSETS UNDER MANAGEMENT

The Asset Under Management increased to Rs. 20, 458 crore as at 31st March 2013, recording a growth of 19%. This increase in AUM is an outcome of following a prudent investment philosophy which focuses on optimizing risk adjusted returns to policyholders.

SERVICE PARAMETERS

Max Life Insurance has taken several initiatives to enhance its focus on customer centricity. The Company has one of the lowest customer complaints incidence rate at 0.20 complaints per thousand for the financial year 2012-13. At Max Life Insurance 99.95% of the customer complaints were resolved within the specified time of 14 days for the financial year.

The Company is tracking well on its promises of claims guarantee to its policyholders. 100% of death claims received on policies more than 3 year old have been paid and 98.6% of all death claims were paid within 10 days of receipt of relevant documents. Efforts to further enhance the efficiency of our claims management process has resulted in Claims Payment Ratio of 94.3% during the year and only 0.09% i.e. 8 claims were pending decision.

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 tables, please click on the links given below:

Financial Year (FY) 2012-13 (April 2012 – March 2013) compared with FY 2011-12 (April 2011 – March 2012)

SERVICE PARAMETERS

Media contact details

Arpan Basu, Max Life Insurance Co. Ltd., +91 9818083556, arpan.basu@maxlifeinsurance.com

Contributed via: Bloomberg Publisher WEB Service

Provider ID: 7aae02e4abce427fb7c5ed46a4f2c3fc

-0- May/22/2013 12:29 GMT

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