Max Financial Services Limited

Amrit Singh

CFO from Max Financial

25%

the first nine months of the fiscal year, our individual adjusted first-year premium has grown by 25%, outperforming the private sector, which grew at 19%, and overall industry, which grew at 14%. Eve

19%

dual adjusted first-year premium has grown by 25%, outperforming the private sector, which grew at 19%, and overall industry, which grew at 14%. Even on a two-year compounded annual growth rate basis,

14%

by 25%, outperforming the private sector, which grew at 19%, and overall industry, which grew at 14%. Even on a two-year compounded annual growth rate basis, we have grown at 22%, almost double at th

22%

ustry, which grew at 14%. Even on a two-year compounded annual growth rate basis, we have grown at 22%, almost double at the industry CAGR at 11%. In Quarter 3, individual adjusted sales grew by 16%,

11%

r compounded annual growth rate basis, we have grown at 22%, almost double at the industry CAGR at 11%. In Quarter 3, individual adjusted sales grew by 16%, outperforming both private sector growth,

16%

t 22%, almost double at the industry CAGR at 11%. In Quarter 3, individual adjusted sales grew by 16%, outperforming both private sector growth, which was at 13%, and overall growth of industry, whic

13%

r 3, individual adjusted sales grew by 16%, outperforming both private sector growth, which was at 13%, and overall growth of industry, which was at 5%. Additionally, our Total APE expanded by 17%, d

5%

orming both private sector growth, which was at 13%, and overall growth of industry, which was at 5%. Additionally, our Total APE expanded by 17%, driven by an 11% increase in policy issues. Our pr

17%

at 13%, and overall growth of industry, which was at 5%. Additionally, our Total APE expanded by 17%, driven by an 11% increase in policy issues. Our prop channels continue to see strong growth, expa

24%

y an 11% increase in policy issues. Our prop channels continue to see strong growth, expanding by 24% in Quarter 3 and 41% over the first nine months. This growth is supported by both offline and onli

41%

policy issues. Our prop channels continue to see strong growth, expanding by 24% in Quarter 3 and 41% over the first nine months. This growth is supported by both offline and online channels, with the

12%

nd online channels, with the online segment strengthening our leadership position. Banca grew by 12% in Quarter 3 and 14% over 9 months. Our Group Credit Life business grew by 18% in the first nine m

“And with further investments, we expect that brands will reach out to the segments that we intend to cover more and more as we go forward.”

“Even on a two-year compounded annual growth rate basis, we have grown at 22%, almost double at the industry CAGR at 11%.”

“These new partnerships are expected to contribute significantly in the medium term and have already surpassed the 100-crore mark.”

“Typically, in Quarter 3, our volumes will be higher than Quarter 2, and we will see volume leverage benefit.”

“Just to clarify, in all our discussions over the last many quarters, we have been repeating that the net impact of the surrender guideline on us will be between 100 to 200 basis points.”

“And hence, we ended up at the lower end of 100-200 basis point guidance that we have given.”

“That will be the endeavor on which we will work as we go along.”

“Hopefully, the regulatory approval process will be shortened because of the guidelines or the clarification coming from the Act.”

“And second, again, a bit I know it will be premature, but what are, I mean, because you have kind of your Board has deliberated this issue and come up with this kind of a roadmap.”

“I am very hopeful that as things stabilize and we move forward a couple of quarters, we will be back into the range that we have always been.”

Amrit Singh

23

Prashant Tripathy

9

Moderator

8

Sanketh Godha

5

Prayesh Jain

4

Gaurav Nigam

4

Neeraj Toshniwal

4

Madhukar Ladha

3

Supratim Datta

2

Shreya Shivani

1

Amrit Singh

Thank you. Good morning, everyone. And welcome to our Earnings Call for the quarter ended December 2024. The Results were made available on our website and on the exchanges last evening. And as always, I am joined by Prashant Tripathy – Managing Director and CEO of Axis Max Life Insurance. I will hand it over to Prashant to share "Developments and Insights" from the quarter.

Prashant Tripathy

Thank you, Amrit, and good morning, everyone. Thank you very much for being on the call this morning. As many of you may be aware, and already know that in Quarter 3, actually in the month of December, we refreshed our brand, transitioning from Max Life Insurance to Axis Max Life Insurance and change our corporate name to Axis Max Life Insurance Limited. The strategic move represents the integration of two trusted names in the financial services sector. It enables us to extend our reach beyond Metro and Tier-1 cities, where our concentration as well as the awareness, both were pretty strong already. But the hypothesis was to deepen our presence through our brand, especially in smaller cities, while carrying forward Max Life's legacy, expertise, and leveraging the trust and recognition associated with Axis Bank. A recent brand survey conducted by Kantar in January 2025 highlights the positive impact of our refreshed brand that we are seeing already, especially in Tier-2 and Tier-3 citie

Amrit Singh

Thanks, Prashant. Just a quick update on housekeeping financial metrics. • MFSL consolidated revenue excluding investment income stands at Rs. 20,907 crore, a growth of 14% in 9 months FY '25. • MFSL consolidated profit after tax is at Rs. 365 crore. • Axis Max Life's renewal premium has grown by 12% to Rs. 13,269 crore. And thereby a gross premium growth of 14% to Rs. 21,360 crore. • Value of new business, written over this period, stands at Rs. 1,255 crore, growth of 9%, with an NBM of 21.9% for 9 months FY '25. • Embedded value as at end of 31st December is Rs. 24,129 crore. And annualized total RoEV for 9 month FY '25 is 21.2% and the annualized operating RoEV stands at 17.3%. This has nil operating variance and a positive non-operating variance of Rs. 537 crore. • Policyholder OPEX to GWP is 14.9% and total cost to GWP stands at 24.3% for 9 months FY '25. Policyholder OPEX has grown by 15% for 9 months FY '25 and for Quarter 3, it has grown only by 2%. • Axis Max Life 9-month prof

Prashant Tripathy

reduce 4% points from 25.38, we come closer to 21.3. So, 21.9 in 9 months, you can help me understand on that bit. My second question is on the Banca channel. There is a bit of, I mean, a slight slowdown that sequentially probably that has picked up over there. If you can help us understand, is it just Axis Bank, all of the banks, are there any regulatory process changes going on at the banks? Any color on that would be helpful. And my last question is, sir, we are done with the rebranding exercise and congratulations on that. On the timelines on listing of Axis Max Life Insurance, What I understand that the Insurance Amendment Bill could probably facilitate it better because there is a clause for merger between insurance and non-insurance companies. So, if that comes through, do you think that timelines on listing could be much shorter than earlier envisaged of 1, 1.5, 2 years? Those are my three questions. Thank you. Thank you, Shreya. Let me take the questions one by one. The first

Prashant Tripathy

Thank you. The next question comes from the line of Avinash from Emkay. Please go ahead. Hi, good morning. Thanks for the opportunity. So, a couple of questions. The first one is, you know, I mean, for very long, you had a kind of range of ULIP in product mix. And now you seem to be consistently breaching that. So, is it that, I mean, post this Axis Max Life or Axis joining the rank of promoters, then the strategic change as far as the thought process is concerned that now you are fine with kind of, you know, selling the product that is demanded by the customer amid prevailing external environment. So, is it a kind of a strategic shift that, okay, now you are comfortable with selling even higher ULIPs if there is a demand? And of course, when the demand moderate, of course, you will change that. So, is there kind of some change in thought process? And related to that on ULIP, in terms of you have been attaching these protection and riders, currently, if any kind of you can provide the

Supratim Datta

Thanks for the opportunity. My first question is on the growth side. So, you have indicated that you are expecting a 20% growth for the full year, which basically means that in fourth quarter, the growth will be around 11%. Is that correct? So, should we see a higher mix of the non-PAR and PAR and slower growth in the ULIP? Is that something that you are building towards in the fourth quarter? And continuing that, you know, over FY '26 and, you know, maybe into FY '27, how do you see this product mix shift now that, you know, we are seeing some bit of slowdown in the market and, you know, potentially there could be a rate cut in the next 6 to 12 months. So, you know, how should we think about or how Max as a company is thinking about the product mix changing over the next 12 months and what are you doing towards that? So, that's my first question. The second one was, again, on ULIP. Recently, SEBI has been talking about launching a product which combines mutual funds and term insurance