Max India Limited Financial Overview
✓ MAX
Quality orientation is evidenced by significant value
creation in the form of Embedded Value
MAX
LIFE
INSURANCE
The EV as at 31st March 2015 is Rs 5,232 Cr, after allowing for shareholder
dividend pay out of Rs 240 Cr and share capital buy back of Rs 166 Cr in FY15.
The Return on EV¹ over FY15 is 28.1 per cent while the Operating Return on EV
is 22.3 per cent.
The VNB written during FY15 is Rs 460 Cr and the portfolio new business margin
is 23.4 per cent on APE².
During FY 2015, there was an acquisition cost over-run chargeable to
shareholders of Rs 37 Cr, which implies a VNB of Rs 423 Cr and a new business
margin of 21.5%, post over-runs
To reduce reinvestment risk in the non-par portfolio, Max Life is considering
derivative arrangements. The cost of such arrangements has not been allowed
as at 31st March 2015.
Note: The results are developed using market consistent methodology, but they are not intended to be
compliant with the MCEV Principles issued by the Stichting CFO Forum Foundation (CFO Forum) or the
Actuarial Practice Standard 10 (APS10) as issued by the Institute of Actuaries of India.
1 The Return on EV is calculated before capital movements during the year.
21 Annual Premium Equivalent (APE) is calculated as 100% of regular premium + 10% of single premium (FY15 APE: 1967 Cr.)View entire presentation