MFSLNSEQ1 FY26August 7, 2025

Max Financial Services Limited

7,274words
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Key numbers — 40 extracted
rs,
e MAX FINANCIAL SERVICES LIMITED CIN: L24223PB1988PLC008031 Corporate Office: L20M(21), Max Towers, Plot No. C-001/A/1, Sector-16B, Noida- 201301 P: + 91 120 4696000 I Email: corpsecretarial@maxindia
Rs 6,194
of Choice Product Innovation People & Customer ▪ MFSL revenue* excluding investment income at Rs 6,194 cr, grows 18% in 3M FY’26. Consolidated Profit After Tax at Rs 86 cr; ▪ ▪ ▪ Individual Adjusted fir
18%
Innovation People & Customer ▪ MFSL revenue* excluding investment income at Rs 6,194 cr, grows 18% in 3M FY’26. Consolidated Profit After Tax at Rs 86 cr; ▪ ▪ ▪ Individual Adjusted first year Premi
Rs 86
excluding investment income at Rs 6,194 cr, grows 18% in 3M FY’26. Consolidated Profit After Tax at Rs 86 cr; ▪ ▪ ▪ Individual Adjusted first year Premium at Rs 1,553 cr grew by 23% vs Private industry gro
Rs 1,553
FY’26. Consolidated Profit After Tax at Rs 86 cr; ▪ ▪ ▪ Individual Adjusted first year Premium at Rs 1,553 cr grew by 23% vs Private industry growth of 8%; Private Market share at 10.0% during 3M FY’26 expan
23%
Profit After Tax at Rs 86 cr; ▪ ▪ ▪ Individual Adjusted first year Premium at Rs 1,553 cr grew by 23% vs Private industry growth of 8%; Private Market share at 10.0% during 3M FY’26 expanded by 121 bps
8%
▪ Individual Adjusted first year Premium at Rs 1,553 cr grew by 23% vs Private industry growth of 8%; Private Market share at 10.0% during 3M FY’26 expanded by 121 bps from 8.8% during 3M FY’25; Total
10.0%
t year Premium at Rs 1,553 cr grew by 23% vs Private industry growth of 8%; Private Market share at 10.0% during 3M FY’26 expanded by 121 bps from 8.8% during 3M FY’25; Total APE# also grew by 15% driven b
121 bps
by 23% vs Private industry growth of 8%; Private Market share at 10.0% during 3M FY’26 expanded by 121 bps from 8.8% during 3M FY’25; Total APE# also grew by 15% driven by robust NOP growth of 10%. ▪ ▪ ▪
8.8%
ivate industry growth of 8%; Private Market share at 10.0% during 3M FY’26 expanded by 121 bps from 8.8% during 3M FY’25; Total APE# also grew by 15% driven by robust NOP growth of 10%. ▪ ▪ ▪ ▪ 3M FY’2
15%
are at 10.0% during 3M FY’26 expanded by 121 bps from 8.8% during 3M FY’25; Total APE# also grew by 15% driven by robust NOP growth of 10%. ▪ ▪ ▪ ▪ 3M FY’26 VNB at 335 cr grew by 32% yoy and NBM at 20
10%
ed by 121 bps from 8.8% during 3M FY’25; Total APE# also grew by 15% driven by robust NOP growth of 10%. ▪ ▪ ▪ ▪ 3M FY’26 VNB at 335 cr grew by 32% yoy and NBM at 20.1% vs Q1 FY’25 VNB at 254 cr and N
Guidance — 1 items
Sub
opening
“Investor Release– Q1 FY 26 Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing Investor Release – Q1 FY26 being issued by the Company on the outcome of its Board meeting held on August 7, 2025.”
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Risks & concerns — 12 flagged
▪ Multi-tier governance and automation for highest impact areas ▪ Quantified risk appetite for – Operational errors – Product set up errors ▪ Comprehensive Vendor due diligence
— Preventive Programs
▪ Customized Incident Management program ▪ Enterprise-wide tool for incident disclosures ▪ Risk certifications for critical processes
— Detective Programs
Risk free rate sensitivities under new business allow for the change in the value of assets as at the date of valuation.
— Gender diversity ratio
▪ For the market consistent methodology, an explicit allowance for the risks is made through the estimation of the Time Value of Financial Options and Guarantees (TVFOG), Cost of Residual Non-Hedgeable Risks (CRNHR) and Frictional Cost (FC) whereas for the traditional EV approach, the allowance for the risk is made through the Risk Discount Rate (RDR).
— Gender diversity ratio
38 Components of VIF (1/2) Present Value of Future Profits (PVFP) ▪ Best estimate cash flows are projected and discounted at risk free investment returns.
— The EV is calculated to be the sum of
Cost of Residual Non-Hedgeable Risks (CRNHR) ▪ The CRNHR is calculated based on a cost of capital approach as the discounted value of an annual charge applied to the projected risk bearing capital for all non-hedgeable risks.
— The EV is calculated to be the sum of
▪ The risk bearing capital has been calculated based on 99.5 percentile stress events for all non-hedgeable risks over a one-year time horizon.
— The EV is calculated to be the sum of
▪ The stress factors applied in calculating the projected risk capital in the future are based on the latest EU Solvency II directives recalibrated for Indian economic conditions.
— The EV is calculated to be the sum of
40 Key Assumptions for EV and VNB (1/2) Economic Assumptions ▪ The EV is calculated using risk free (government bond) spot rate yield curve taken from FBIL1 as at June 2025.
— The EV is calculated to be the sum of
The VNB is calculated using the beginning of respective quarter’s risk free yield curve (i.e.
— The EV is calculated to be the sum of
▪ Assumptions are based on company’s own experience along with expectations of future experience given the likely impact of any current and proposed management actions on such assumptions.
— The EV is calculated to be the sum of
▪ The future CSR rate is derived after allowing for the exemption on dividend income and is applied to the post-tax, risk-adjusted profits emerging each year.
— The EV is calculated to be the sum of
Speaking time
Validation
3
Sub
1
Product Mix
1
Operating RoEV
1
Management Framework
1
Management
1
Business Continuity
1
Preventive Programs
1
Detective Programs
1
Corrective programs
1
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Opening remarks
Sub
Investor Release– Q1 FY 26 Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing Investor Release – Q1 FY26 being issued by the Company on the outcome of its Board meeting held on August 7, 2025. You are requested to kindly take the aforesaid on record. Thanking you, Yours faithfully For Max Financial Services Limited Piyush Soni Company Secretary & Compliance Officer Encl: as above MAX FINANCIAL SERVICES LIMITED CIN: L24223PB1988PLC008031 Corporate Office: L20M(21), Max Towers, Plot No. C-001/A/1, Sector-16B, Noida- 201301 P: + 91 120 4696000 I Email: corpsecretarial@maxindia.com I Website: www.maxfinancialservices.com Regd. Office: Bhai Mohan Singh Nagar, Village Railmajra, Tehsil Balachaur, Dist. Nawanshahr, Punjab -144 533, India Max Financial Performance Update Investor Release 3M FY’26 August 7, 2025 ^Individual Death Claims Paid Ratio as per Audited Financials for FY 2024-2025 | *As per public disclosure for H1 FY
Product Mix
PAR Annuity NPAR Savings Protection & Health GROUP ULIP 14% 35% 5% 9% 28% 6% 18% 15% 42% 5% 10% 23% 5% 15% 39% 10% 10% 22% 5% 13% 33% 11% 20% 12% 27% 6% 12% Line of Business# 3M FY’25 3M FY’26 Growth Par Annuity NPAR Savings Protection & Health Group Credit Life Group Term Life ULIP 23% 209 82 353 161 26 136 622 213 114 498 218 27 170 598 2% 40% 41% 36% 3% 25% -4% Value of New Business: NBMs higher due to higher protection & savings mix Amount in INR Cr 26.5% 1,973 24.0% 2,107 NBM 20.1% 335 17.5 % 254 FY'24 FY'25 3M FY'25 3M FY'26 FY'24 FY'25 3M FY'25 3M FY'26 Note: Numbers may not add up to 100% due to rounding off, Group protection including Group INR credit life adjusted for 10% for single premium and term business, #Amounts in INR cr, 1 Group includes GTL & GCL; 2Retail protection includes riders except for Par riders 10 Efficient capital management with profitable growth PH Opex to GWP: Investing towards building distribution Solvency Ratio (Pre-dividend) 13.8% 13.6% 172% 17.9% 17
Operating RoEV
20.2% 19.1% 14.2% 14.3% Underwriting Profits Amount in INR cr NB Strain Backbook Surplus SH Surplus 2,076 1,627 336 -1,603 -2,117 447 483 101 556 121 -453 -613 FY'24 FY'25 3M FY'25 3M FY'26 FY'24 FY'25 3M FY'25 3M FY'26 2Policyholder Opex to GWP = ( Opex + Provision for doubtful debts )/Gross written premium 11 Axis Max Life has consistently grown its Asset Under Management1, reached INR 1.8 Lakh crore Assets Under Management - AMLI is the 4th largest2 manager of private LI AUMs and Largest Par fund2 Linked: Healthy mix of Debt and Equity Amount in INR 000’cr Linked Controlled Debt Equity 175 127 161 114 151 107 183 132 44 48 47 51 66% 69% 34% FY'24 31% FY'25 68% 32% 72% 28% 3M FY'25 3M FY'26 Controlled: Consistent mix of Debt and Equity Debt Equity 14% 86% 12% 88% 14% 86% 14% 86% FY’24 FY’25 3M FY’25 3M FY’26 FY'24 FY'25 3M FY'25 3M FY'26 More than 95% of debt investments is in sovereign papers and AAA rated securities Note: 1As of 30th June 2025, 2 Largest Par fund as of Mar-25 Publi
Management Framework
▪ Cash flow and duration matching ▪ Cash flow and duration matching ▪ Comprehensive hedging program ▪ Comprehensive hedging program ▪ Natural hedge ▪ Natural hedge ▪ Limit on non-par sales ▪ Limit on non-par sales ▪ Active policyholder bonus ▪ Active policyholder bonus management for Par business management for Par business Focused Product Focused Product
Management
▪ Repricing to align benefits with ▪ Repricing to align benefits with current rates current rates ▪ Variant and channel level ▪ Variant and channel level granular monitoring granular monitoring
Validation
▪ Direct Board oversight ▪ Direct Board oversight ▪ Stress testing ▪ Stress testing ▪ Sensitivity tracking ▪ Sensitivity tracking ▪ Peer review of liabilities ▪ Peer review of liabilities ▪ Periodic external review of ▪ Periodic external review of Derivatives Derivatives Front Office – Led by CIO: ▪ Differential strategy as per the fund characteristics ▪ Ensuing diversification and credit quality across portfolio, minimize credit and concentration risks Middle Office – Led by CRO: ▪ Independent credit review of portfolio and all new investment proposals ▪ Derivative risk management ▪ Early Warning Framework ▪ Consequence management of stressed assets Back Office – Led by CFO: ▪ Ensuring implementation of cash flow matching requirement of ALM ▪ Valuation, Collateral and Margin management of Derivatives ▪ Appropriate provisioning for stressed assets Information Security and Business Continuity Risks Cyber DARE framework for managing security goals: ▪ Robust framework based on ISO 27001 I
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