Max Life’s Q1 metrics mixed but outlook keeps investors hooked

Shares of Max Financial Services Ltd have been on an upswing since April and have outperformed peers, such as HDFC Life Insurance Co. Ltd, and even the broad Nifty50 index.

The June-quarter metrics of its subsidiary, Max Life Insurance, were mixed, but the outlook provided by the management seems to offer succour to investors.

Max Life Insurance reported a 32% year-on-year (y-o-y) increase in business based on annualized premium equivalent (APE) as its partnership with Axis Bank ensured an increase in product sales. Axis Bank branches contributed 63% of the total business during the quarter, even as proprietary distribution channel suffered due to the regional lockdowns triggered by the second wave of covid-19.

Indeed, the effect of the restrictions was visible on business growth, too. Max Life’s APE showed a 54% sequential drop, a fallout of the second wave and seasonality.

Nevertheless, the life insurer managed to maintain the market share it had gained in the March quarter at 11%.

The management has indicated that a surge in sales through online channels, focus on annuities and robust growth in individual protection plans should help growth.

“Considering a gradual shift towards a more profitable product mix and relatively comfortable valuations, we continue to like Max Life,” analysts at Emkay Global Financial Services Ltd said in a note.


You may also like...

5 Responses

  1. Hello! This is my 1st comment here so I just wanted to give a quick shout out and say I
    really enjoy reading through your articles. Can you suggest any other blogs/websites/forums that cover the
    same topics? Thanks for your time!

  2. I always used to study article in news papers but now as I am a user of net so from now I
    am using net for articles or reviews, thanks to web.

  3. says:

    Hi, i feel that i noticed you visited my website so i came to go back the want?.I’m
    attempting to find issues to improve my web site!I guess its adequate to make use of a few
    of your ideas!!

  4. Have you ever considered about including a little bit more than just
    your articles? I mean, what you say is fundamental and all.

    However think of if you added some great visuals
    or videos to give your posts more, “pop”! Your content is excellent
    but with pics and clips, this website could certainly
    be one of the very best in its field. Good blog!

  5. says:

    Hi, I think your website might be having browser compatibility issues.

    When I look at your blog in Safari, it looks fine but when opening in Internet Explorer, it has
    some overlapping. I just wanted to give you a quick heads
    up! Other then that, terrific blog!

Leave a Reply

Your email address will not be published.