BENGALURU (Reuters) – Max Financial Services Ltd reported a nearly three-fold rise in quarterly profit, helped by a surge in value of new business and margins.
The country’s largest non-bank private life insurance company said profit rose to 2.25 billion rupees ($27.51 million) in the quarter ended Dec. 31, from 748.6 million rupees a year earlier.
The company said new business surged 50% to 5.93 billion rupees in the third quarter, with a best-ever quarterly margin of 39.2%. New business margins are a measure of the expected profitability of new businesses.
Max Financial said its net premium income grew 11.9% to 61.58 billion rupees.
New business rose 25% to 11.79 billion rupees in the last nine months of 2022, while embedded value – a measure of future cash flows in life insurance companies and a key financial gauge for insurers – stood at 155.47 billion rupees, compared with 134.12 billion rupees a year earlier.
The insurer’s assets under management (AUM) were at 1.18 trillion rupees for the nine months ending Dec. 31, a rise of 16% from the previous year.
Last week, HDFC Life Insurance Co reported a jump in profit and said insurers continued to benefit from a relatively robust economy, stable savings trends and favourable regulatory regime.
($1 = 81.7960 Indian rupees)
(Reporting by Anuran Sadhu in Bengaluru; Editing by Eileen Soreng and Krishna Chandra Eluri)
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