Max Financial Services Ltd reports Q3FY21 earnings

Max Financial Services Ltd. (MFSL) today announced its financial results for the quarter ended December 31st, 2020. In Q3 FY21, MFSL's consolidated revenues were at Rs. 8,990 Cr., growing 68% year-on-year due to higher investment income. Consolidated PAT grew 54% to Rs. 227 Cr.

In Q3 FY21, MFSL's sole subsidiary Max Life reported Gross written premium of Rs. 4,629 Cr, Up 19% over the previous year. Shareholders' PAT of Rs. 220 Cr, up 43% over the previous year, due to higher investment income and reserve release due to hedging of in-force Protection business.

For the nine months ended December 3151, 2021, Max Life reported a Market-Consistent Embedded Value (MCEV) of Rs. 11,723 Cr., with an Operating Return on Embedded Value (RoEV) of nearly 18%. The Value of New Business (VNB) written during 9MFY21 was Rs. 788 Cr., growing 37% year-on-year, due to shift in the product mix towards NPAR savings and protection products. New Business Margin (NBM) of 25.9% expanded by 490 bps over last year. Focus on Protection growth continued with 54% retail growth, and penetration increased to 10% in 9MFY21 compared to 8% in 9M FY20. Renewal Premium grew 16% to Rs. 7,669 Cr. In this period, Max Life's Assets under Management (AUM) stood at Rs. 84,724 Cr., growing 23% year-on-year.

Individual adjusted sales were recorded at Rs. 1,2106 Cr in Q3FY21, being 21% higher than last year, spurred by a 27% growth in Bancassurance channel sales, which in turn was a result of a 32% increase in Axis bank sales. Proprietary channels sales grew by 9% in 03, led by Agency performance growth. E-commerce channel grew by 54% year-on-year due to protection tailwinds, leading claims paid ratio and a competitive price.

Mr. Mohit Talwar, Managing Director, Max Financial Services, said, "MFSL has had a solid quarter with our subsidiary Max Life registering impressive VNB and Individual Adjusted Sales. This has been a consequence of a consciously diverse product mix wherein Non-Par and Protection products continue to lead in sales growth and margin expansion. Our business apparatus, which was rapidly digitized as a result of a global pandemic, has played a significant role in helping Max Life continue its progression despite COVID headwinds. In fact, we gained 158 bps to maintain our private market share at nearly 11%."

"This quarter, we have also been happy to move a step closer to the conclusion of our much-anticipated deal with Axis Bank, with a CCI approval for 12% stake acquisition in Max Life by the bank and its subsidiaries Axis Capital Limited & Axis Securities Limited. We arenow waiting for IRDAI's decision. Our focus in the upcoming year will be set on bringing the deal to closure as well as on furthering our digitisation agenda with equal attention to expanding proprietary sales and boosting persistency through increased renewals and collection rates," he added.

Shares of Max Financial Services Ltd was last trading in BSE at Rs.729 as compared to the previous close of Rs. 715.5. The total number of shares traded during the day was 35724 in over 1037 trades.

The stock hit an intraday high of Rs. 736.65 and intraday low of 715.45. The net turnover during the day was Rs. 25989370.

Source : Equity Bulls

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