Max Life Insurance Records a Growth of 31% in the Value of New under an arrangement with NewsVoir.PTI takes no editorial responsibility for the same). New Delhi, Delhi, India (NewsVoir) May 29, 2018 . Announces its Embedded Value** at Rs. 7,509 cr with ROEV of 20.6% .
To distribute Policyholders Bonus of Rs. 1,084 Cr Highlights of all-round performance in FY18 Gross Written Premium up by 16% to Rs. 12,501 crore As on 31st March 2018 - Assets Under Management up by 18% to Rs. 52,237 crore Sum Assured up by 35% to Rs. 5,11,541 crore Max Life Insurance Co. Ltd., a leading Indian life insurance company, recorded Individual adjusted first year premium of Rs. 3,215 crore achieving growth of 22% in the Financial Year 2017-18 (FY18).
During this period the Gross Written Premium of the company grew by 16% to Rs. 12,501 crore, while the renewal premium recorded growth of 15% to Rs. 8,152 crore. The Company recorded shareholder profit (Post Tax) of Rs. 528 crore. Max Life Insurance Co. Ltd. performed well on other key business parameters for FY18:
. New Business Premium (Individual + Group) at Rs. 4,349 crore, recorded growth of 19% while retaining private market share at 9%.
. Solvency Ratio of 263%, significantly higher than the regulatory requirement of 150%, indicating the Company's strong and stable financial position.
. Conservation ratio was at 90% as compared to 89% in the previous year
. Claims paid ratio grew to 98.26% in FY18 from 97.81% in FY17 Commenting on the performance of the company, Mr. Rajesh Sud, Executive Vice Chairman & Managing Director, Max Life Insurance said, "I am delighted to share yet another year of strong financial performance of the company in FY18. Max Life Insurance actively leveraged growing household interest in financial savings and digitisation in India.
During the year Max Life Insurance not only recorded increase in case size but also covered more lives than in past years which resulted in a robust growth in new business. Max Life Insurance continued its leadership position in online term plans as well as claims management. The increase in embedded value reflects high quality of our business.
Our strong business performance has resulted in superior returns for both our policyholders in form of bonus and investment return in ULIPs fund and shareholders in form of dividend.
At Max Life, we believe that engaged employees create happy customers which leads to great shareholder outcomes.
* The VNB represents the value added to the EV due to the new business written by the Company during the year. For FY18, the VNB was Rs. 656 Cr, calculated at actual costs, resulting into new business margin of 20.2%.
**Embedded Value post final shareholder dividend
Key Business Drivers Unit Year Ended Y-o-Y Growth
Mar 18 Mar 17
a) Individual Adjusted Premium Rs. cr. 3,215 2,639 22%
b) Gross Written Premium Income Rs. cr. 12,501 10,780 16%
New Business Premium (Individual + Group) Rs. cr. 4,349
Renewal Premium Rs. cr. 8,152 7,114 15%
c) Expense to Gross Premium Ratio Rs. cr. 14.8% 12.9% 190 bps
d) Shareholder Profit (Post Tax) Rs. cr. 528 660 -20%
e) Share Capital including reserves and surplus Rs. cr. 2,689
f) Conservation Ratio % 89.6% 88.6% 100 bps
g) Number of Agents (Agency) Nos. 54,791 54,283 1%
h) Individual Policies in Force No. Lacs 40.8 39.1 4%
j) Sum Insured in Force Rs. cr. 5,11,541 3,77,572 35%
k) Assets Under Management Rs. cr. 52,237 44,370 18%
l) Embedded Value Rs. cr. 7,509 6,590 20.6%
m) Operating return on EV (ROEV) % 20.6% 19.9% 70 bps
n) Margin % 20.2% 18.8% 140 bps FY 2017-18 (April 2017 - March 2018) compared with FY 2016-17 (April 2016 - March 2017) Revenue The Gross Written Premium for FY18 increased by 16% to Rs. 12,501 crore with 19% increase in new business premium to Rs. 4,349 crore and the renewal premium recording a growth of 15% to Rs. 8,152 crore.
The adjusted individual first year premium increased by 22% to Rs. 3,215 crore and retained market share of 9% amongst the private players. A growth of 4% in the number of policies has been recorded, taking it to 40.8 lakhs for FY18, in comparison to 39.1 lakhs in FY17.