Max Financial Services Reports 21% Revenue Growth In Q1 FY25
Max Life Insurance, a key subsidiary, saw significant growth in its financial metrics during the quarter
Max Financial Services reported a strong 21 per cent growth in consolidated revenue, reaching Rs 7,709 crore for the first quarter of FY25, driven by higher investment income. Excluding investment income, the consolidated revenue grew by 11 per cent year-on-year to Rs 5,235 crore.
Max Life Insurance, a key subsidiary, saw significant growth in its financial metrics during the quarter. The New Business Premium (Individual and Group) increased by 12 per cent to Rs 2,075 crore, while the Individual Adjusted First Year Premium rose by 27 per cent to Rs 1,260 crore, contributing to a private market share gain of 22 basis points to 8.8 per cent.
The number of new retail policies grew by 27 per cent, and the renewal premium rose by 10 per cent to Rs 3,323 crore, bringing the Gross Written Premium to Rs 5,399 crore, an 11 per cent increase compared to the previous year.
Max Life's Profit Before Tax surged by 46 per cent to Rs 151 crore in Q1 FY25. The company's Embedded Value grew by 30 per cent, reaching Rs 22,043 crore, with an Operating Return on Embedded Value (RoEV) of 14.2 per cent. The Total Annualised Premium Equivalent (APE) increased by 31 per cent to Rs 1,453 crore during the quarter.
Max Life also achieved a 60 per cent growth in APE through its proprietary channels, which now account for 49 per cent of total new sales, up from 40 per cent in Q1 FY24. The company maintained its leadership position in the ecommerce sector, ranking #1 in both online Protection and online Savings. The new business growth was driven by a strong performance in the Protection & Health, Group Credit Life, and Retail Annuity segments.
Max Life has been proactive in expanding its distribution network, onboarding seven new partners in Q1 FY25, including Catholic Syrian Bank Limited (CSB Bank). The company also launched innovative products, such as the Flexi Cap Fund and the Max Life Smart Wealth Annuity Guaranteed Pension Plan, aimed at enhancing customer offerings.
Max Life continued to lead in persistency performance, with a 13-month persistency rate of 85.3 per cent.
The strong financial performance in Q1 FY25 underscores Max Life’s strategic focus on scaling proprietary channels, building strong partnerships, and innovating its product offerings to create lasting value for its customers and shareholders.
