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Max Life posts impressive all round performance in H1 FY 2015

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Pune (Nov 3, 2014):Max Life Insurance, India's leading life insurance company, continued to outperform the industry during the first half of the Financial Year 2014-15. The Company recorded15% growth in New Business Premium to Rs.1,039 crore.Max Life Insurance further increased its market share* to 10.7%, an increase of 28 bps, amongst private lifeinsurers. The Gross Written Premium of the company grew 13% to Rs.3,395 crore. During the period, the Post Tax Shareholder Profit grew 14% to Rs.242crore. In view of a strong all round performance during H1 FY 2014-15, the Company declared a net interim Shareholder Dividend of Rs.150 crore, a 17% upward revision from interim dividend announced in the same period previous year.

Max Life Insurance also performed well on other business parameters for H1 FY 2014-15 as compared to corresponding period previous year:

  • Assets Under Management increased by 29% to Rs.28,038 crore from September 2013
  • Sum Assured in-force (Individual and Group )at   Rs.2,01,302 crore, recorded an increase of 8%
  • Solvency Ratio of 487%, more than 3 times the mandatory 150%, indicates the Company’s strong and stable financial position

Max Life Insurance’s customer centric approach to business has contributed to this strong financial performance.

  • One of the lowest customer complaints incidence at 0.22 complaints per thousand policies
  • 91% of all claims were paid during first half of FY 2015  amounting to Rs.101.75 crore; only 4.4% claims pending decision
  • Conservation ratio at86.3%, continues to be one of the best in the industry

Commenting on the performance of the company, Mr. Rajesh Sud, CEO  & Managing Director, Max Life Insurance said "I am delighted that Max Life Insurance performed well on all parameters in a positive business environment.  The company has demonstrated superior all round performance and has maintained its position as the largest non bank promoted private life insurance player in India with an increase in market share amongst private life insurers. In fact, Max Life is the only life insurance company to witness uninterrupted growth in the past 26 months.”
“This has been made possible due to our continued focus on building a successful life insurance business to deliver the core value of protection and long-term savings in a Life Insurance contract. Going forward, we are confident of a sustained profitable growth for Max Life Insurance as we continue to differentiate in the market place basis our quality of advice, service excellence, financial strength, superior human capital, values driven culture and strong corporate governance,” he further added. 


Half Yearly (H1 FY) 2014-15 (April 2014 – September 2014) compared with H1 FY 2013-14 (April 2013 – September 2013)

 

Apr -Sep’14
(Rs. Crs)

Apr -Sep’13
(Rs. Crs)

Change

New Business Premium

1,039

904

15%

Adj. Indv. First Year Premium

792

709

12%

Gross Written Premium

3,395

3,005

13%

Shareholders’ Profit After Tax

242

212

14%

 

As on Sept 30, 2014

As on Sept 30, 2013

Change

Sum Assured In force

2,01,302

1,86,841

8%

Asset Under Management

28,038

21,735

29%

Solvency Margin %

487%

521%

-

Revenue
The Gross Written Premium for H1 FY 2014-15 increased by 13% to Rs.3,395 crorewith new business premium growing 15% to Rs. 1,039 crore and the renewal premium recording a growth of 12% to Rs.2,356 crore.
Max Life Insurance has also outperformed the industry on the basis of adjusted individual first year premium, a parameter tracked by global investor community, and gained 28 bps in market share to achieve 10.7% market share amongst private life insurers during H1 FY 2014-15. On this parameter, while the total industry recorded a decline of 11% Max Life grew 12% to Rs. 792 crore.
The company’s conservation ratio, which is amongst the highest at 86.3%, is testimony to ourhighly engaged customers.

Cost Management
The Company has continued to focus on efficiency to reduce costs. This resulted in the cost ratio improving 200 basis points to 27.8% in H1 FY 2014-15 from 29.8% in H1 FY 2013-14.

ProfitAfterTax
During the H1 FY 2014-15, Max Life Insurance, recorded an Shareholders Profit After Tax of Rs.242 crore up 14% as compared to the corresponding period previous year.

Solvency Margin & Capital
Max Life Insurance’s solvency ratio stood at 487% as at 30th September 2014, more than 3 times the minimum regulatory mandated ratio of 150%.
The Company maintained its paid up capital (including share premium) as on 30th September 2014 at Rs. 2,127 crore.

Sum Assured and Assets Under Management
The total sum assured increased to Rs. 2,01,302crore recording a growth of 8%. This increase in sum assured is an outcome of the company’s enhanced focus on increasing life cover.

The Asset Under Management increased to Rs.28,038 crore as at 30th September 2014, recording a growth of 29% when compared to September 2013. This increase in AUM is an outcome of a prudent investment philosophy which focuses on optimizing risk adjusted returns to policyholders.

SERVICE PARAMETERS

 

Apr-September ’14
(Rs.Cr.)

Apr- September ’13
(Rs. Cr.)

Improvement

Customer Complaint incident ratio per thousand

0.22

0.23

-1 bps

Customer complaint resolution within 14 days

100%

100%

-

Claims settlement ratio within 10 days of receipt of all documents

99.97%

99.95%

2 bps

Claims Payment Ratio

90.55%

91.67%

- 112 bps

Max Life Insurance has taken several initiatives to enhance its focus on customer centricity. The Company has one of the lowest customer complaints incidence rate at 0.22 complaints per thousand for the first half in the financial year 2014-15. During H1 FY 2014-15, Max Life Insurance resolved100% of the customer complaintswithin the specified time of 14 days.
The Company is tracking well on its promises of claims guarantee to its policyholders. 100% of death claims received on policies more than 3 year old have beenpaid and 99.97% of all death claims were paid within 10 days of receipt of relevant documents. Efforts to further enhance the efficiency of our claims management process has resulted in Claims Payment Ratio of 90.55% during the first half of the financial year and only 4.4% claims were pending decision.