In This Article:
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Consolidated Revenue (excluding investment income): INR 20,907 crores, a growth of 14% in nine months FY25.
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Consolidated Profit After Tax: INR 365 crores.
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Renewal Premium: INR 13,269 crores, a growth of 12%.
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Gross Premium Growth: 14% to INR 21,360 crores.
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Value of New Business (VNB): INR 1,255 crores, a growth of 9%.
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New Business Margin (NBM): 21.9% for nine months FY25.
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Embedded Value: INR 24,129 crores as of December 31.
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Annualized Total Return on Embedded Value (RoEV): 21.2% for nine months FY25.
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Annualized Operating RoEV: 17.3%.
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Policyholder Operating Expenses to Gross Written Premium (OpEx to GWP): 14.9%.
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Total Cost to GWP: 24.3% for nine months FY25.
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Policyholder OpEx Growth: 15% for nine months FY25; 2% for Q3.
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Profit Before Tax: INR 397 crores, a degrowth of 9%.
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Solvency Position: 196% as of December 2024.
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Assets Under Management (AUM): INR 1.72 lakh crores, a growth of 20%.
Release Date: February 05, 2025
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 25% growth in individual adjusted first-year premium, outperforming the private sector and overall industry growth rates.
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The company's total annual premium equivalent (APE) expanded by 17%, driven by an 11% increase in policies issued.
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Max Financial Services Ltd (BOM:500271) successfully onboarded eight new partners in Q3 FY25, which are expected to contribute significantly in the medium term.
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The company achieved its highest-ever level of regular limited pay persistency for the 13th month, increasing by about 240 basis points.
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Max Financial Services Ltd (BOM:500271) has made significant strides in digitization, reducing product launch time by almost 50% and improving operational efficiency.
Negative Points
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The company's margin for Q3 stood at 23.2%, slightly lower than the previous quarter due to product mix changes and surrender guidelines.
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There was a slowdown in growth from the Axis Bank channel in Q3, which was lower than other bank channels.
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The company's ULIP segment, despite growth, has a lower margin compared to non-PAR products, impacting overall profitability.
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Max Financial Services Ltd (BOM:500271) experienced a degrowth of 9% in profit before tax due to higher strains of product forms and segment allocations.
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The economic variance decreased from INR660 crores in the first half to INR537 crores, largely due to equity market movements.
Q & A Highlights
Q: Can you explain the movement in the Value of New Business (VNB) margin from nine months to nine months, and the impact of the product mix and surrender value changes? A: The VNB margin for the quarter was 23.2%, down from 27.2% last year. The 400 basis points decrease is attributed to a 100 basis point impact from surrender income and a 300 basis point impact from product mix changes. We aim to maintain margins around 25% as we adjust the product mix.