Analyst Concall
Axis Max Life growth seen higher than industry - Max Fincl
This story was originally published at 11:41 IST on 14 May 2025
Register to read our real-time news.Informist, Wednesday, May 14, 2025
Please click here to read all liners published on this story
--Max Fincl: Moving towards a balanced product mix
--CONTEXT: Comments by Max Financial's mgmt in post-earnings analyst concall
--Max Fincl:Axis Max Life may aspire to grow faster than industry by 300 bps
--Max Fincl:Looking to create our brand strength in tier-II, tier-III cities
--Max Fincl: Expect clarity on reverse merger with Axis Max Life by Aug-Sept
--Max Fincl: Paying dividend right now not recommended as co needs capital
By Shubham Rana and Vaishali Tyagi
NEW DELHI/MUMBAI - Max Financial Services Ltd. Wednesday said it expects its subsidiary, Axis Max Life Insurance, to grow at least 300 basis points quicker than the industry in the current financial year started Apr. 1.
"One would desire to maintain at least 300 to 400 basis point upside versus how the private industry grows," Prashant Tripathy, chief executive officer and managing director of Axis Max Life Insurance, said in a post-earnings call with analysts Wednesday. Axis Max Life's total annual premium equivalent grew 18% in 2024-25 (Apr-Mar), and Emkay Global Financial Services expects the private sector retail annual premium equivalent to grow around 14-15%.
Max Financial Services Tuesday reported a consolidated net profit of INR 313 million for the quarter ended March, against a net loss of INR 440.5 million reported a year ago. At 1030 IST, shares of Max Financial were up 2.7% at INR 1,324.80 on the National Stock Exchange.
Axis Max Life is making efforts to move towards a more balanced product mix under which Unit-Linked Insurance Plans should come down, the company's management said. In FY25, ULIPs accounted for 42% of Axis Max Life's product mix.
Max Financial's management said the company is looking to build its brand strength in Tier-II and Tier-III cities. The company will wait a year to assess the impact of Axis Max Life rebranding to consider any decisions about changing the pricing, if required, the management said.
On the timeline of the reverse merger with Axis Max Life, Max Financial's management said that they are "very desirous to do the reverse merger". However the company is waiting for clarity on the change in the Insurance Amendment Bill, which is expected to be introduced during the Monsoon Session of Parliament, which will pave the path for the reverse merger with the subsidiary, the management said. "So, hopefully when it comes and I'm quite hopeful that it will come in the month of August, September time frame, we will immediately begin the (reverse merger) exercise," Tripathy said.
Asked about the possibility of paying dividend, Max Financial said that paying dividend right now is not recommended as the business needs capital. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
