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Informist, Friday, Aug. 8, 2025

--Max Fincl: See need for some capital in the near-medium term 

--CONTEXT: Comments by Max Financial's mgmt at post-earnings analyst call 

By Shubham Rana and Vaishali Tyagi

MUMBAI – Axis Max Life Insurance Ltd. may see a need to raise capital in the medium term, the company's management said on Friday. The company expects this given "this business consumes capital due to the products we are selling are growth momentum we are demonstrating", Axis Max Life's management said at the analyst concall of Max Financial Services Ltd., the holding company of the insurer. 

"Some part of it we will fulfill through the debt capacity that we have but we will never starve the business from a growth capital requirement perspective and we are confident our shareholders will also be more than happy to contribute if required for providing and aiding the growth capital in the business," Axis Max Life's management said. 

Max Financial Services Thursday reported a consolidated net profit of INR 696.4 million for the quarter ended June. The company's net profit nearly halved in the June quarter from a year ago, making it the sharpest ever on-year fall in net profit since 2019, data available with Informist showed.

The insurer would like to keep its margin between "the healthy range of 24-25%" in the current financial year," the management said. Axis Max Life's new business margin was 20.1% in the June quarter, up 260 basis points on year. "If we see margins running ahead of that, we will be very keen on clawing that back into the business for growth purposes and building distribution," the management said.  End

Edited by Avishek Dutta

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