Kolkata: Max Life Insurance has scaled a significant business milestone by achieving INR 1 Lac crores of Assets Under Management (AUM) as of September 23, 2021.
With an inordinate focus on financial protection, product innovation, and digitization aimed to deliver a superior customer experience, the Company has witnessed a notable six times growth in its annualized AUM over the past eleven fiscals.
As per IRDAI’s valuation guidelines, in the past ten years, Max Life’s AUM has grown from INR 17.2 thousand crores in FY 11-12 to cross INR 1 Lac crore in the current fiscal. With value-add products and meaningful improvements across customer services, Max Life’s AUM growth has witnessed a 32% growth in FY20-21, and 22.9% growth in the current fiscal, as on September 23, 2021 respectively.
Prashant Tripathy, MD & CEO, Max Life, said, “The milestone achievement of INR 1 Lac Crore of Assets under Management (AUM) is a testament to our commitment that has helped deliver exceptional performance over a decade. The stellar growth has continued into the pandemic times as well, with our highest-ever individual new business sum assured and a decade-high private market share in terms of Individual adjusted FYP. With strategic efforts to boost product innovation, agency distribution, better claims management, and conformity to regulatory trends, Max Life is poised to capitalize on emerging opportunities and take the business to the next pedestal.”
In face of the COVID-19 pandemic-induced business challenges, Max Life has managed to stay the course efficiently where the AUM growth has been driven by an engaged focus on long-term saving and protection business. As per public disclosures, during FY20-21, Max Life continued its strong run by registering a 22% growth in total new business premium (Individual + Group), and a 19% growth in individual adjusted first-year premium. This helped the firm secure a 10.8% market share amongst the private players in terms of individual adjusted first-year premium.
Further, the renewal premium income (including group) grew by 15%, taking gross written premium to INR 19,018 crore, an increase of 18% over the previous financial year. Max Life has also achieved claims paid ratio of 99.35%, paying death claims worth INR 885.57 crore during the Financial Year 2020-21.
The focus on customer loyalty has been underlined by the Company achieving the joint #1 ranking in an independent survey conducted by Kantar where it leads with a most loyal customer base in the Indian private life insurance industry during the Covid-19 pandemic.
Despite the COVID-19 second wave, the growth trend has continued in Q1 FY22. In the quarter, as per public disclosures, Max Life registered a growth of 27% in gross written premium, with a 21% increase in renewal premium. This has helped the firm record a 32% growth in individual Annual Premium Equivalent (APE), with its market share improving to 11.3% in the private life insurance industry (Ind. Adj. FYP).