Max Financial Services Ltd (MFSL), the holding company of Max Life Insurance, on Friday reported a 26 percent increase in consolidated net profit to Rs 81 crore for the September quarter. The company had posted a net profit of Rs 64 crore in the corresponding period of the previous fiscal.
The profit grew by 26 percent due to reversal of impairment loss on investments, the company said in a statement.
MFSL's consolidated revenues rose by 50 percent to Rs 7,020 crore due to higher investment income, it said. "In Q2 FY21, Max Life reported Shareholders' profit of Rs 26 crore, down 70 percent over the previous year due to a higher new business strain owing to higher non-par and protection sales, partially offset by higher investment income. This shift also boosted New Business Margins and Value of New Business," it said.
Max Life's assets under management (AUM) stood at Rs 77,764 crore, an increase of 19 percent, it said. Individual protection grew by 78 percent year-on-year and penetration increased to 12 percent in the first half compared to 7 percent in the same period a year ago.
On the back of consistent H1 performance, Max Life's emphasis will remain on increasing protection penetration, rebalancing product mix and long-term transformational initiatives across agency, technology and customer obsession, the insurance company's Managing Director Prashant Tripathy said.