In This Article:
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Consolidated Revenue (excluding investment income): INR32,620 crores, a growth of 12% in FY25.
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Consolidated PAT: INR403 crores.
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Renewal Premiums: Grew by 14% to INR21,049 crores.
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Gross Premiums: Grew by 13% to INR33,223 crores.
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Value of New Business (VNB): INR2,107 crores for FY25, with a growth of 7%.
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New Business Margin (NBM): 24%.
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Embedded Value (EV): INR25,192 crores as of March 31, 2025.
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Annualized Total Return on EV: 29%.
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Annualized Operating Return on EV (ROEV): 19.1%.
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Policyholder OpEx to GWP: 13.6%.
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Total Cost to GWP: 23.1%.
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Profit Before Tax (PBT): INR448 crores, a growth of 20% for FY25.
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Solvency Ratio: 201%, up from 172% last March.
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Assets Under Management (AUM): Approximately INR1.7 lakh crores, a growth of 16%.
Release Date: May 14, 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 consolidated revenue growth of 12% in FY25, reaching INR32,620 crores.
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The company added 44 new partners across retail and group channels in FY25, enhancing its distribution network.
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Max Financial Services Ltd (BOM:500271) achieved a 35% growth in its protection business and a 31% increase in individual new business sum assured.
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The company launched innovative products like Star ULIP and Smart Term Plan Plus, contributing to product diversification and growth.
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Max Financial Services Ltd (BOM:500271) maintained a high customer satisfaction ranking, with a six-point increase in Net Promoter Scores, indicating strong customer engagement.
Negative Points
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Margins for the full year were 24%, a decrease of 250 basis points compared to the previous year, primarily due to a higher proportion of ULIPs.
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The growth in the bank assurance channel slowed in the fourth quarter, with Axis Bank's growth at 7%, reflecting broader industry trends.
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The company faces challenges from regulatory changes, particularly concerning surrender value guidelines, which impacted margins.
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Despite strong growth in e-commerce, the company acknowledges that the base effect may limit similar growth rates in the future.
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The reverse merger process is delayed, pending regulatory clarity, which could impact strategic initiatives.
Q & A Highlights
Q: What is driving Max Financial's impressive growth in April, and how do you see growth and margins in FY26? A: Prashant Tripathy, CEO, noted that April's growth of 24% was across all lines of business and channels. The company aims to maintain a growth rate 300-400 basis points above the private industry average, which is expected to be 13-14%. For margins, they aim for a range of 24-25%, balancing growth and profitability.