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Informist, Thursday, Aug. 13, 2026

 

--Max Fincl: Retirement segment presents strong opportunities

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

--Max Fincl: Expect value of new business margin to grow faster than APE

--Max Fincl: Expect sustainable growth in annuity

 

By Shweta and Pratiksha

 

NEW DELHI – Max Financial Services Ltd. will close the deal of Axis Bank buying up to 30% stake in its subsidiary Axis Max Life Insurance Ltd. after the lender is done with its internal processes, a senior company official said Thursday. 

 

"Axis (Bank) always was keen on taking stake up to 30%. They are also in their internal process of doing the pros and cons around it," the company official told sector analysts in a post-earnings conference call. The company will close the deal depending upon this. 

 

During Apr-Jun, Axis Bank completed the acquisition of an additional 0.98% stake in Axis Max Life Insurance through an equity infusion of INR 3.81 billion, increasing its shareholding to 19.99%. "The infusion enhanced our financial strength, raising our solvency ratio to a robust 1.98%," Sumit Madan, Managing Director and Chief Executive Officer of Axis Max Life Insurance, said. 

The company's focus remains on building a sustainable and profitable franchise while creating long-term value for all stakeholders, including customers, employees, distribution partners, and shareholders, he added.

 

Max Financial, the holding company of Axis Max Life Insurance Ltd., reported a consolidated net profit of INR 955.60 million for the June quarter, up 37% on year. The consolidated revenue of the company rose to INR 149.70 billion during Apr-Jun, up nearly 17% on year.

The company reported its earnings after market hours. On Thursday, Max Financial Services' shares ended at INR 1,512.40 on the National Stock Exchange, down 0.2% from the previous close.

 

Asked about annuity, the official said the company is well equipped across all channels, be it access, agency, or banker proprietorship as a whole. "An annuity, it looks like a very sustainable, scalable growth for us," Madan said. 

 

The company is focusing on expanding its retirement portfolio with the launch of Smart RISE plan, a variable of an existing product that combines guaranteed lifelong income with participation in long-term equity market performance, offering customers an attractive balance between security and growth. "Retirement solutions continue to represent a significant long-term opportunity," the official said.

 

On the business side, the company is aiming for its value of new business to grow faster than the annualised premium equivalent. "From an aspirational perspective, we have been saying we will want to grow, make the VNB (value of new business) grow faster than the APE (annualised premium equivalent) growth. And we leave it at that, which actually does mean that there would be a conjugate margin improvement," the senior official said. "The year has started to a great start. We do intend to grow VNB faster than the APE growth."

 

For the June quarter, the company has reported 15% on-year growth in its total annualised premium equivalent at INR 19.22 billion. Its value of new business grew 33% on year to INR 4.46 billion for the three-month period ended June. Value for new business is a metric used to measure the profitability of new policies sold by an insurance company, while annual premium equivalent is a sales metric used by insurers to compare new business revenue.  End

 

Edited by Avishek Dutta

 

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