Max Financial Shares Zoomed Over 4%: Released Q2 FY25 Results

On October 22, 2024, Max Financial Services Limited, a leading financial services provider released its results for the quarter (Q2 FY25) and year ended September 30, 2024 (1H FY25). 

Max Financial 1H FY25 Results

The company recorded consolidated revenue of ₹25,178 crore for H1 FY25, reflecting a 30% increase driven by higher investment income. Excluding investment income, consolidated revenue reached ₹12,820 crore, up 14% year-on-year in Q2 FY25.

Max Life Insurance Co. Ltd. (Max Life) experienced a 19% rise in New Business Premium (Individual and Group) to ₹5,091 crore, with Individual Adjusted First Year Premium climbing 31% to ₹3,309 crore, resulting in a 51 basis points increase in private market share to 9.3%. The number of new retail policies increased by 23%. Additionally, renewal premiums rose 12% to ₹8,046 crore, pushing Gross Written Premium to ₹13,137 crore, a 14% growth compared to the previous financial year.

Quarterly Performance

In Q2 FY25, Max Life achieved a notable 23% growth in Value of New Business, reaching ₹513 crore, and a 16% increase to ₹766 crore in H1 FY25. The Total Annualized Premium Equivalent (APE) surged 31% to ₹2,170 crore in Q2 FY25 and 31% to ₹3,623 crore in H1 FY25. Max Life’s Embedded Value grew by 30% to ₹23,338 crore, with an Operating RoEV of 16.8% and a positive operating variance.

With over two decades of collaboration, Axis Bank became a co-promoter of Max Life in 2021, creating new opportunities to enhance brand value and shareholder returns. To capitalize on the strengths of both partners, the Boards of Max Life, Max Financial Services Ltd., and Axis Bank have approved incorporating ‘Axis’ into Max Life’s corporate name and brand identity, which will be launched pending necessary corporate and regulatory approvals.

On October 23, 2024, Max Financial shares opened at ₹1,170.00 and touched the day high of ₹1228.70, reflecting a rise of 4.39% at 09:30 AM. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.