In This Article:
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Individual-Adjusted First Year Premium Growth: 34% in Q2 FY '25.
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Total APE Growth: 31% in Q2 FY '25.
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Proprietary Channels Growth: 45% in Q2 FY '25 and 51% in H1 FY '25.
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Online Channels Growth: Over 59% in Q2 FY '25.
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Group Credit Life Business Growth: 34% in H1 FY '25.
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ULIP Segment Growth: 74% in Q2 FY '25.
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Retail Protection Growth: 49% in Q2 FY '25.
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Rider APE Growth: Over 280% in H1 FY '25.
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VNB Growth: 23% in Q2 FY '25; 16% in H1 FY '25.
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NBM: 23.6% in Q2 FY '25; 21.2% in H1 FY '25.
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Consolidated Revenue Growth (excluding investment income): 14% in H1 FY '25.
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Consolidated Profit After Tax: INR 295 crores.
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Max Life Renewal Premium Growth: 12% to INR 8,046 crores.
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Gross Premium Growth: 14% to INR 14,137 crores.
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Embedded Value: INR 23,338 crores as of September 2024.
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Annualized Total Return on EV: 24.2% in H1 FY '25.
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Annualized Operating RoEV: 16.8% in H1 FY '25.
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Policyholder OpEx-to-GWP: 16.5%.
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Total Cost-to-GWP: 25.6%.
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Max Life Profit Growth: 3% to INR 267 crores in H1 FY '25.
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Solvency Position: 198% as of September 2024.
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Assets Under Management Growth: 27% to INR 1.7 lakh crores as of September 2024.
Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Max Financial Services Ltd (BOM:500271) reported a strong growth of 34% in individual-adjusted first year premium, outperforming the private sector and overall industry growth rates.
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The company achieved a 31% increase in Total APE in Q2, driven by a significant rise in the number of policies issued.
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Max Life's online channels led the market with a 59% growth in Q2, maintaining the top position across digital platforms.
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The company successfully onboarded 20 new partners in Q2, including two banks and several brokers, enhancing its distribution network.
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Max Life's Value of New Business (VNB) increased by 23% in Q2, with a New Business Margin (NBM) of 23.6%.
Negative Points
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The company anticipates a net margin impact of 100 to 200 basis points due to new surrender regulations, which may take a few quarters to mitigate.
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Max Life's annuity sales saw a moderate growth of 5% in Q2, impacted by competitive pricing actions.
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The company's solvency position stood at 198% at the end of September 2024, which may be considered low by some analysts.
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Max Life's profit growth was modest at 3% for the first half of FY '25, which may not meet investor expectations.
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The company's policyholder OpEx-to-GWP ratio increased to 16.5%, indicating higher operational expenses relative to gross written premiums.