Max Financial Services Limited (MFS) today announced the embedded value (EV) for its life insurance business, Max Life, at Rs 6,946 crore as on September 30, 2017, based on market-consistent methodology.
The annualised growth in EV in the first half of FY2018 (H1 FY2018) was 17 percent. The value of new business (VNB) written during H1 FY2018 was Rs 204 crore, growing 16 percent over the corresponding period last year.
The New Business Margin during this period was a strong 18 percent. Several life insurers have now been declaring their EVs, including the ones going on the listing path.
For the second quarter ended September 30, 2017 (Q2 FY2018), Max Life reported Individual Adjusted Sales of Rs 654 crore, growing 18 percent over the previous year. During H1, they grew 19 percent to Rs 1,112 crore.
Rahul Khosla, President, Max Group and Chairman, Max Life said, “With the potential merger with HDFC Life behind us, our focus has firmly shifted to aggressively pursuing profitable growth through investments in our proprietary channels such as agency and digital, enhancing policyholder experience, leveraging our strong bancassurance partnerships and forging new distribution alliances."
He added that they have renewed the focus to strengthen the franchise by evaluating acquisition opportunities that have started to emerge in the insurance space.
The EV of a life insurance company comprises two key elements, net asset value or the net worth of the company, which represents the market value of the company’s assets attributable to the shareholders, and the present value of the company’s future expected profits from its existing business portfolio as at the date of valuation.
A deal for merger of Max Financial Services and HDFC Life was called off due to the regulator having concerns about the structure of the merger.
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