Max Financial Services Ltd

Max Financial Services Q1 FY27: Strong Growth Across Key Metrics 📈

- Axis Bank acquired an additional 0.98% stake in Axis Max Life Insurance via an equity infusion of INR381 crore, increasing its shareholding to 19.99%.

- The solvency ratio improved to a robust 198% following the capital infusion.

- Individual Adjusted First Year Premium grew by 17% in Q1 FY27, outperforming the private sector and overall industry.

- APE grew by 15%, with proprietary channels growing at 15% and partnership channels at 16%.

- Online business APE grew by 27%, and Group Credit Life segment grew by 57%.

- VNB margin expanded from 20.3% in Q1 FY26 to 23.2% in Q1 FY27, driving a 33% growth in Value of New Business (VNB).

- Gross Written Premium (GWP) grew by 19% to INR10,610 crore, with renewal premium growing 20% to INR4,639 crore.

- Individual new business sum assured grew by 32% year-on-year to INR1,17,000 crore.

- Embedded Value stood at INR30,415 crore, a growth of 15% year-on-year, with annualized operating ROEV improving to 14.9%.

- Assets Under Management (AUM) crossed INR2 lakh crore, closing at INR2.03 lakh crore, an 11% increase.

- Policyholder operating expense as a percentage of GWP improved by 185 basis points year-on-year to 16%.

- The company maintains its rank 3 in individual sum assured in the private sector.

- Customer experience score improved to 61, ranking number one in Hansa Research's CuES 2026 study.

- 13-month premium persistency stood at 83%, with longer tenure persistency metrics showing improvement.

- Net Promoter Score (NPS) increased to 63 from a baseline of 60 at FY25 exit.

- AI and analytics initiatives contributed significantly, with AI-driven cross-sell delivering INR58 crore of new business.

- The company has an enabling approval for a QIP of up to INR1,600 crore, valid until May next year, to support growth requirements.

- Structure simplification process is underway following regulatory amendments, with an expected timeline of 6 to 12 months post-filing.

- Axis Bank is evaluating an opportunity to increase its stake up to 30%, subject to internal processes and regulations.

- The company expects to sustain its year-on-year margin profile through FY27 and aims for VNB growth to outpace APE growth.