Axis Max Life to see ULIP moderation by 3%, eyes IPO simplification in FY26: CFO Amrit Singh

Amrit Singh, Director and Chief Financial Officer, Axis Max Life Insurance

Axis Max Life Insurance expects a 3-5 percent reduction in its unit-linked insurance plan (ULIP) mix in FY26, shifting toward non-participating and participating designs, according to Chief Financial Officer Amrit Singh.

In FY25, ULIPs accounted for approximately 42 percent of the company’s portfolio, while non-participating comprised 23 percent and par comprised 15 percent.

During an interaction with Moneycontrol, Singh said, this anticipated shift comes amid geopolitical risks and economic uncertainties influencing customer preferences for traditional product forms.

On the IPO front, Singh also outlined plans to simplify the corporate structure by merging Max Financial Services Limited (MFSL), the listed holding company, with Axis Max Life Insurance.

This move awaits regulatory amendments to the Insurance Act, he added, expected in the upcoming monsoon session.

“Once the amendments come through, we will initiate activities to collapse the structure into one listed entity,” Singh said.

Axis Max Life also plans to expand its distribution network in FY26, targeting 50-100 new branches to bolster its agency channel.

The company maintains a market-leading position in e-commerce, he added.

On embedded insurance, he cautioned that life insurance’s conversational nature limits its adoption compared to general insurance, but Axis Max Life remains open to bundling opportunities.

Addressing speculations of a potential shift in bancassurance from a commission to a transaction fee model, Singh clarified, “We have no knowledge of any such proposal in our interactions with the regulator or the Ministry of Finance.”

In Q4 FY25, Axis Max Life reported a 20 percent growth in individual adjusted first-year premium, doubling the industry’s 10 percent growth rate and surpassing private players’ 15 percent.

This follows a 16 percent growth in FY24, yielding a two-year CAGR of 18 percent

The company’s proprietary channels grew at a 26 percent CAGR over two years, contributing 42 percent to new premiums in FY25, up from 31 percent in FY20, while bank channels, led by Axis Bank (48 percent of the 56 percent bank contribution), saw a relative decline.

The life insurer saw its Individual Adjusted First Year Premium rise by 20 percent to Rs 8,329 crore, boosting its private market share by 37 basis points to 9.8 percent.

New retail policies grew by 11 percent, while renewal premiums increased by 14 percent to Rs 21,049 crore, driving Gross Written Premium to Rs 33,223 crore, up 13 percent from the prior year.

Despite surrender regulations and a higher ULIP share, Axis Max Life reported a 7 percent growth in Value of New Business (VNB) in FY25, fuelled by over 300 percent growth in riders and strategic product modifications that enhanced shareholder value and customer offerings, the investor presentation said.