MFSL had posted a net profit of Rs 54.24 crore in the corresponding April-June period of the previous fiscal.
“In Q1FY21, MFSL’s consolidated profit after tax grew 235 per cent to Rs 182 crore backed by strong performance of life insurance subsidiary Max Life Insurance,” it said in a release.
Consolidated revenues were at Rs 5,517 crore, growing 40 per cent year-on-year from Rs 3,948.77 crore in Q1 FY20, it said.
Max Life reported shareholders’ profit after tax of Rs 171 crore, which grew by 151 per cent over the previous year, MFSL added.
The growth in profits was aided by higher investment income, lower claims, and tax refunds. Max Life’s total revenues grew by 2 per cent during April-June 2020-21 to Rs 3,616 crore, it said.
Despite an impact on new sales due to COVID-19 towards the end of FY20, Max Life picked up momentum in Q1 FY21 and gained market share by 217 basis points to 11 per cent.
Max Life ranked fourth amongst all private life insurers. The individual protection penetration saw a 103 per cent increase in the first quarter, indicating that every second policy sold was a protection policy. In the same period, individual new business sum assured grew by 39 per cent, MFSL added.
The Value of New Business (VNB) written during Q1 FY21 was Rs 113 crore, while new business margin stood at 17 per cent. In this period, Max Life’s assets under management (AUM) stood at Rs 73,239 crore, growing 15 per cent year-on-year, it said.
“Max Life has rebounded commendably, outpacing the competition with its growth. This has been possible due to the emphasis on strengthening digital channels, which has allowed Max Life to function remotely almost entirely from sales to customer on-boarding, and after-sales,” said Mohit Talwar, vice chairman, Max Group and managing director, Max Financial Services.
He said the company currently is in the process of coordinating regulatory approvals for the Max Life-Axis Bank JV that it had announced in April 2020.
The proposed joint venture will set Max Life up well for its next stage of growth, he added.
“Our efforts on maintaining a balanced product portfolio increased the trust that our policy holders have in us and also helped drive revenues, resulting in an Individual APE of Rs 660 crore along with a 39 per cent growth for the Individual New Business Sum Assured,” said Prashant Tripathy, MD and CEO, Max Life.
He said company’s digital-first consumer mindset helped the e-commerce channel grow by 31 per cent, followed by 8 per cent in proprietary channels.
MFSL is part of the Max Group. Focused on life insurance, MSFL owns and actively manages a 72.52 per cent stake in Max Life Insurance.
MFSL shares closed at Rs 562.80 apiece on BSE, up 0.11 per cent.