Max Life’s new biz grows by grew by 19% ion H1
In H1 FY25, Max Life Insurance Co. Ltd.’s (Max Life/ the Company) New Business Premium (Individual and Group) grew by 19% to ₹5,091 crore and Individual Adjusted First Year Premium grew by 31% to ₹3,309 crore leading to private market share gain by 51 bps to 9.3%.
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Mumbai, Oct 24: In H1 FY25, Max Life Insurance Co. Ltd.’s (Max Life/ the Company) New Business Premium (Individual and Group) grew by 19% to ₹5,091 crore and Individual Adjusted First Year Premium grew by 31% to ₹3,309 crore leading to private market share gain by 51 bps to 9.3%. Number of new retail policies grew by 23%. Further, the renewal premium rose by 12% to ₹8,046 crore, taking the Gross Written Premium to ₹13,137 crore, an increase of 14% over the previous financial year.
During the second quarter, Max Life registered a strong growth in Value of new business which grew by 23% to ₹513 crore in Q2 FY25 and by 16% to 766 crores in H1 FY25. Further, the Total Annualized Premium Equivalent (APE) rose by 31% to ₹2,170 crore in Q2 FY25 and by 31% to ₹3,623 crore in H1 FY25. Max Life’s Embedded value grew by 30%, standing at ₹23,338 crore, and Operating RoEV is at 16.8% with a positive operating variance.
Axis Bank came on board as a Co-promoter in 2021, unlocking new opportunities to strengthen brand and deliver shareholder value. In order to leverage the strengths of the reputation of the two partners, the Boards of Max Life, Max Financial Services Ltd. and Axis Bank have approved the inclusion of ‘Axis’ as part of Max Life’s corporate name and brand identity, which will be launched in due course, subject to requisite corporate and regulatory approvals.
Prashant Tripathy, CEO and Managing Director, Max Life, said, “The H1 FY25 strong business results affirm our strategic focus on expanding proprietary channels, deepening partnerships, and unlocking new customer opportunities. Our continued investments and strong execution capabilities have resulted in sustained momentum across all our channels. In Q2 FY25 we outperformed both private sector and the overall industry growth on the back of strong growth in our Individual Adjusted First Year Premium sales while reporting healthy profitability outcomes. As we continue on this growth trajectory, we are excited about the new refreshed identity powered by the synergy between Axis Bank and Max Life that will further enable us to go beyond urban and tier-1 cities. This new identity will harness the strengths of both partners, reinforcing the ‘Bharosa’ we inspire in our customers, employees, investors, and stakeholders as we move into the future.”
In H1 FY25, Max Life’s Proprietary Channels Annual Premium Equivalent (APE) grew by 51% on Y-o-Y basis secular growth driven within Agency, Cross-sell and E-commerce. The contribution of Proprietary channels to total new sales increased from 40% in H1 FY24 to 46% in H1 FY25. The company maintained its leadership position in overall E-commerce business in both online Protection, and online Savings. The new business growth was fuelled by strong growth in Protection & Health, ULIP and Group Credit Life. Protection & Health grew by 54%, Group Credit Life grew by 34% in H1 FY25. Additionally, Max Life has successfully on-boarded 20 new partners in Q2 FY25, including India Post Payments Bank.
In Q2 FY25, in order to be complaint with IRDAI’s surrender regulations Max life successfully relaunched 98% of its products for sale without any impact on new business. Continuing on product innovation, Max Life launched another Nifty 500 momentum 50 fund predominantly for the E-Commerce Customers in Q2 FY25 designed to capitalize increasing interest in Index funds. Retirement is Max life’s one of the strategic focus areas. In this direction, Max life recently launched the findings of the 4th edition of its flagship retirement study - India Retirement Index Study (IRIS 4.0) which gauges India’s retirement preparedness. The IRIS 4.0 findings reveals that Urban India's retirement preparedness has increased from 47 points in IRIS 3.0 to 49 points in IRIS 4.0, driven by greater awareness and proactive steps in both health and financial planning.
In Q2 FY25, Max Life’s persistency performance has continued to improve with a leadership position maintained in 13-month persistency (basis number of policies) at 85.3%.
