• Max Financial Services Limited (MFS),  is the holding company for Max Life.
  • Max Life’s Assets under Management (AUM) crossed the Rs 70,000 Cr. mark February 2020
  • Max Life Insurance, is a joint venture between Max Financial Services Ltd. and Mitsui Sumitomo Insurance Co. Ltd.
  • In FY 2020, Max Life Insurance was the fourth largest private life insurer in India with a market share of 10% among private insurers with over 44 lakh policies in force.
  • Max Life outperformed the private industry as well as top 3 private players in 9M FY21. Max Life grew 11%, while top 10 private players de-grew by 5%
  • Govt of Singapore buys 1.7% stake in Max Financial in June 2021.

Company Overview

Max Financial Services Limited (MFS), a part of the Max Group, is the holding company for Max Life, India’s largest non-bank, private life insurance company. 1

The Company’s vision is to be the most admired company for protecting and enhancing the financial future of its customers. This vision is founded on a clear set of values tMFSL0.jpghat are shared across the Group – Sevabhav, Excellence and Credibility.

Max Financial Services owns and actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan-headquartered global leader in life insurance.

Max Life is India’s fourth largest private life insurance company. It has emerged as a benchmark for the life insurance industry in India across several dimensions including customer persistency, high-performance bancassurance and agency channels, enviable relationships with distribution partners, strong and tenured management, focus on long-term savings and protection products and superior management of costs.

Max Financial Services Limited is listed on the Bombay Stock Exchange as well as the National Stock Exchange. The company’s investor base includes marquee global financial institutions such as KKR, Baron, Ward ferry, New York Life, Vanguard, Blackrock, Jupiter, Norges, Neuberger Burman, Eastspring and Dimension.

The other entities in the Max Group are Max India Limited, which has a presence in the senior living and healthcare industry, and Max Ventures and Industries Limited, which serves as the Group’s entrepreneurial arm to explore the ‘wider world of business.’

Following the demerger of the erstwhile consolidated Max India Limited, the Max Group continues to be bound together by common values and works together to benefit from enterprise synergies.

Max Life Insurance

Max Life Insurance, one of the leading private life insurer, is a joint venture between Max Financial Services Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max Financial Services Ltd. is part of the Max Group, which is a leading Indian multi-business corporation, while Mitsui Sumitomo Insurance is a member of MS&AD Insurance Group, which is amongst the leading insurers in the world. Max Life Insurance offers comprehensive long term savings, protection and retirement solutions through its high quality agency distribution and multi-channel distribution partners. Through its range of 24 products and 9 riders For its individual and group customers, the Company offers solution as per customer needs across life stage. 2

Setting benchmarks is a way of life at Max Life Insurance. In FY 2020, Max Life Insurance was the fourth largest private life insurer in India with a market share of 10% among private insurers with over 44 lakh policies in force. The company recorded gross written premium of Rs.16,184 crore and shareholders’ profit after tax of Rs. 595 crore for FY 2020. Max Life’s net worth (including Reserves and Surplus) of Rs. 2,599 crore with a solvency margin of 207% is indicative of its financial strength and stability.

Joint Ventures

Mitsui Sumitomo Insurance, Japan (Life Insurance)

Mitsui Sumitomo Insurance Company, Limited (MSI) is one of the core operating companies of MS&AD Insurance Group, which is among the top 10 general insurers in the world and the largest in Japan. The MS&AD Insurance Group Holdings, Inc. was formed in April 2010 through the business integration of Mitsui Sumitomo Insurance Group Holdings, Inc., Aioi Insurance Co., Ltd., and Nissay Dowa General Insurance Co., Ltd. 3

With a history of more than 90 years of International business development, MSI has expanded its international business into 42 countries globally.MSI is the only insurance company with bases in all 10 countries of the ASEAN region, and has overall built strong positions across all Asian markets.


Established in 1900, Toppan Printing Co. Ltd. (Market Cap of US$ 6.8 billion) is a multinational corporation with interests in areas such as Information & Communication, Living & Industry, and Electronics. Over the years, Toppan Printing has brought together advanced printing technology and a wide variety of knowledge and experience in fields such as marketing and IT. This has allowed the company to establish a systemized set of “printing technologies” that are unique to Toppan.

At present, the core of Toppan’s business is the development and provision of “total solutions” that take into consideration challenges in business faced by customers, as well as the challenges faced by all stakeholders and society as a whole.


Business Overview

Most financial metrics for MFSL’s sole operating subsidiary, Max Life, were impacted due to the COVID-19 pandemic and a nationwide lockdown since March 2020. Despite the aberration, Max Life continued to perform in line with market standards, while maintaining its market share in the private life insurance industry at a stable 9.7%. 4

In FY 20, MFSL reported consolidated revenues of Rs 18,242 Cr., 7% lower compared to the previous year, due to market to market loss on debt and equity portfolio. The Company reported consolidated Profit after Tax of Rs 273 Cr., 34% lower compared to the previous year, largely due to shift in product mix towards Non-Par business, investments in proprietary channels, provision for impairment on financial assets and one-time tax expense on settlement of tax dispute under the ‘Vivad se Vishwas’ Scheme.

In FY 20, Gross Premiums for Max Life of Rs 16,184 Cr. grew at 11% compared to the previous year. New business and renewal premium grew marginally at 5% and 13% respectively over the previous year, due to lower collections in ULIP and COVID related grace period permitted to customers by IRDAI.

Max Life’s Individual APE was recorded at Rs 4,116 Cr., increasing 5% over the previous year. This was driven by a growth of 10% in proprietary channels, 5% in agency channels, 32% in customer advisory team channels, and 15% in e-commerce. On the other hand, Bancassurance channel recorded a marginal growth of 3%, impacted by headwinds at Yes Bank, where the channel sales witnessed a fall of 2%, Sales through Axis Bank registered a nominal growth of 5%.

Max Life’s Shareholders’ Profit Before Tax in FY 20 was Rs 598 Cr., 4% lower than the previous year, mainly due to an increase in Non-Par business and investments in proprietary channels.

Max Life also reported Market-Consistent Embedded Value (MCEV) of Rs 9,977 Cr., with an Operating Return on Embedded Value (RoEV) of 20.3%. The Value of New Business (VNB) written during FY 20 was Rs 897 Cr., growing 5% over the previous year, and the New Business Margin stood at 21.6%, 10 bps lower compared to the previous year.

In February 2020, Max Life’s Assets under Management (AUM) crossed the Rs 70,000 Cr. mark for the first time. The AUM as on March 31, 2020, however, stood at Rs 68,471 Cr., growing 9%, owing to high market volatility in March 2020. Max Life’s Claims Paid Ratio improved by 48 bps, from 98.74% in Q4FY19 to 99.22% in Q4FY20.

In FY 20, Max Life secured a 9.7% market share amongst the private players in terms of individual adjusted first year premium, maintaining its fourth rank by recording a modest gain of 4 bps. In FY 20, Max Life secured a 5.5% overall market share and recorded a loss of 6 bps due to the faster growth of LIC than that of the private industry.

In FY 20, the First Year Premium (Individual + Group) for Max Life Insurance increased by 8% to Rs 5,583 Cr. In terms of Individual Adjusted First Year Premium, Max Life recorded a 5% growth to Rs 4,078 Cr. Further, the Renewal Premium (including group) grew by 13% to Rs 10,600 Cr., taking gross written premium to Rs 16,184 Cr., an increase of 11% over the previous financial year. The investment income stood at Rs 2,366 Cr., a year-onyear de-growth of 54%.

Max Life’s Asset Under Management also grew by 9% year-on-year at Rs 68,471 Cr. as on March 31, 2020 up from Rs 62,798 Cr. as on March 31, 2019.

The operating expenses (policyholders) to net premium ratio increased from 13.4% in FY 19 to 14.7% in FY 20 primarily on account of investments towards augmenting distribution and the cost (commission plus policyholders’ operating expenses) to net premium ratio also increased from 20.2% in FY 19 to 21.1% in FY 20.

Max Life generated a post-tax shareholders profit of Rs 539 Cr. in FY 20 as compared to Rs 556 Cr. in the previous financial year, recording a decline of 3%. Max Life announced total shareholders’ Interim & Final dividend of Rs 643 Cr. (net of Dividend Distribution Tax), which takes the total dividend distribution to 33.5% of the face value of each share.


Max Financial Consolidated March 2021

Reported Consolidated quarterly numbers for Max Financial Services are: 5

Net Sales at Rs 9,759.75 crore in March 2021 up 128.88% from Rs. 4,264.06 crore in March 2020.

Quarterly Net Profit at Rs. 62.34 crore in March 2021 up 272.73% from Rs. 36.09 crore in March 2020.

EBITDA stands at Rs. 68.66 crore in March 2021 down 50.63% from Rs. 139.07 crore in March 2020.

Max Financial EPS has increased to Rs. 2.13 in March 2021 from Rs. 1.34 in March 2020.

Recent developments

Govt of Singapore buys 1.7% stake in Max Financial

June 17, 2021; Government of Singapore on June 17 acquired 1.74 percent equity stake in Max Financial Services, the holding company of Max Life Insurance, while portfolio management services firm Old Bridge Capital bought 2.51 percent stake in Globus Spirits. 6

Promoter entity Max Ventures Investment Holdings sold 78,28,217 equity shares (representing 2.2 percent of total paid up equity) in Max Financial Services at a price of Rs 1,000.08 per share, the NSE bulk deals data showed.

Government of Singapore was the buyer in above bulk deal, acquiring 60,13,487 equity shares (representing 1.74 percent of total paid up equity) in Max Financial Services at Rs 1,000 per share. The stock corrected 1.68 percent to close at Rs 1,005.

Among other deals, Templeton Strategic Emerging Markets Fund IV LDC remained seller in liquor maker Globus Spirits from the month of May, selling another 8,93,388 equity shares in the company at Rs 490.16 per share.


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Created by Asif Farooqui on 2021/07/01 15:19

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