Max Financial Services (MFSL) showcased a robust financial performance in Q2 FY24, reporting consolidated revenue of Rs 10,189 crore, marking a 9% increase from the previous year. The consolidated profit after tax (PAT) soared to Rs 170 crore, witnessing an impressive 176% YoY growth.
In Q2, individual adjusted first-year premiums surged by 32%, outpacing the private sector’s 16% growth, primarily driven by a 34% increase in the number of policies. Proprietary channels’ new business premiums (APE) grew by 50%, while banca channels saw a 30% rise. Notably, proprietary channels contributed 40% to the total new business premium, showing a 5% increase from H1FY24.
Max Life achieved a value of new business (VNB) of Rs 663 crore, reflecting a 13% YoY growth, with a new business margin (NBM) of 24% in H1FY24. The company’s embedded value stood at Rs 17,911 crore, and the operating return on EV (RoEV) improved to 17.5% YoY.
Max Life expanded its distribution capabilities by partnering with AU Small Finance Bank and adding seven new partners in H1FY24. Additionally, the introduction of an industry-first index fund focusing on small caps and tied to Nifty Small Cap 250 Quality 50 Index gained rapid popularity, accumulating Rs 100 crore AUM within 40 days of its launch.
The retirement segment experienced remarkable growth, particularly in the annuity business, with a staggering 217% increase in H1FY24. Max Life Pension Fund Management Limited’s assets under management (AUM) rose to Rs 409 crore as of September 2023 from Rs 16 crore in September 2022.
Despite these impressive achievements, at 1:23 pm, MFSL shares were 1.72% lower at ₹898.35, indicating a temporary market dip despite the company’s outstanding performance.
