New Delhi, Delhi, India
FY2016 Results Highlights:
Max Life’s Operating Revenues: Rs 9,139 Cr., grew 13%
Max Life EV as at 31st March 2016: Rs 5,617 Cr; Operating Return on EV: 17%
Max Life AUM as at 31st March 2016: Rs. 35,824 Cr., grew 15%
Max Financial Services Ltd. (MFS), the first company listed following the demerger of the erstwhile Max India, today announced its financial results for FY2015-16. MFS, which is India’s only listed company providing undiluted access to the life insurance sector, reported strong performance, with consolidated operating revenues of Rs. 3,257 Cr. and consolidated Profit Before Tax (PBT) of Rs. 92 Cr. in Q4 FY2016.
Over the past financial year, the Company reported consolidated operating revenues of Rs. 9,173 Cr., and a consolidated PBT of Rs. 465 Cr.
MFS’ sole operating subsidiary Max Life Insurance performed well on all business parameters in FY2015-16, further strengthening its position as the best-in-class provider of long-term savings and protection products. Max Life reported operating revenues of Rs. 3,243 Cr. in Q4 FY2016, growing 20% over the same period last year. For the full financial year, Max Life’s operating revenues stood at Rs. 9,139 Cr., 13% higher than the previous year. During this period, the Company reported PBT of Rs. 511 Cr, growing 7% over the corresponding period last year.
Max Life also announced its Embedded Value as at 31st March 2016 at Rs. 5,617 Cr., after allowing for a payout of Rs. 439 Cr. as shareholder dividend (including tax on dividend) in FY2016. This represents an Operating Return on EV (RoEV) for FY2016 of 17%. The Value of New Business (VNB) written during FY2016 was Rs. 388 Cr. with a Portfolio New Business Margin of 18.3% (before cost overruns) and 17.9 per cent (after cost overruns).
The Company’s Assets Under Management (AUM) stood at Rs. 35,824 Cr. as at 31st March 2016, growing 15% over the same period last year.
Commenting on MFS’ performance, Mr. Rahul Khosla, President, Max Group and Chairman, Max Life Insurance said, “Max Life Insurance has been on a steady growth trajectory over the past five years, establishing itself as the largest non-bank-owned private life insurer. With the demerger providing sharper focus to the business, Max Life is now in a position to deliver new avenues of growth, including through bancassurance and acquisition opportunities.”
Mr. Mohit Talwar, Managing Director, Max Financial Services Ltd., added, “Max Life has ended an already stellar year at a high, delivering its highest ever sales in any quarter of Rs. 936 Cr. With the right vision, strategy and leadership, Max Life is well placed for another successful year.”
In January 2016, the Max Group concluded a mega corporate restructuring wherein the erstwhile Max India was demerged into three separate entities, Max Financial Services, Max India and Max Ventures & Industries. The original company was renamed Max Financial Services and the ex-demerger stock of MFS started trading from 27th January 2016. The other two demerged entities, Max India and Max Ventures & Industries, will be listed on Indian stock exchanges in June 2016.
About Max Group
The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Health & Allied businesses and packaging sectors. In FY 2016, the Group recorded consolidated revenues of Rs 14,237 Cr. It has a total customer base of 9 million, nearly 240 offices spread across India and people strength of 22,500 as on 31st March 2016.The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, IFC Washington, Temasek, Fidelity and New York Life.
The Max Group comprises three holding companies, namely Max Financial Services, Max India and Max Ventures & Industries.
About Max Financial Services Limited
Max Financial Services Limited (MFS), a part of the US$ 2 billion Max Group, is the parent company of Max Life, India’s largest non-bank, private life insurance company. MFS actively manages a 68 per cent stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in life insurance.