Max Financial jumps 9%

Max Financial Services (MFS), the holding company of Max Life Insurance, is the top gainer on the BSE since opening bell, obviously enthused with its earnings for Q2FY19. The stock rose almost 9% to Rs.427.65, going pretty close to its 10% UC of today at Rs.432.40.

MFS reported consolidated revenues of Rs. 4,075 crore, up 18% (YoY) and PAT was at Rs.53 crore, 22% due to one-off expenses for the attempted acquisition of IDBI Federal Life, higher proportion of protection sales and shift in product mix.

The business also reported a strong Operating Return on Embedded Value (RoEV) of 18.5% with Market-Consistent EV (MCEV) of Rs. 8,034 crore.

Max Life’s Assets under Management, as on 30th September 2018, were Rs. 56,070 Cr., growing 17% over the previous year. Max Life is one of the 5 largest fund managers among life insurers in India.

The Value of New Business (VNB) (precost overrun) written during the first half of FY2019 (H1 FY2019) was Rs. 325 crore, up 41% (YoY), mainly due to higher sales in protection products.  The pre-cost overrun New Business Margin (NBM) stood at 22.9%. The post-cost overrun VNB during H1 was Rs. 290 Cr. growing 42% over the previous year. The post-cost overrun NBM stood at 20.4%.

Max Life’s Assets under Management, as on 30th September 2018, were Rs. 56,070 Cr., growing 17% over the previous year.

Max Life is one of the 5 largest fund managers among life insurers in India.