Max Life insurance announced its FY24 results

24 September 2024

During FY24, Max Life Insurance demonstrated significant financial growth, with total premium income rising to ₹29,529 Cr, a 16.5% increase from ₹25,341 Cr in the previous year. This increase was driven by strong performance across different premium categories. First-year premiums grew to ₹6,889 Cr from ₹5,899 Cr, while renewal premiums saw a substantial jump to ₹18,506 Cr, up from ₹16,382 Cr. Additionally, single premiums rose sharply to ₹4,134 Cr from ₹3,060 Cr, reflecting the company's successful client acquisition and retention strategies. commission expenses also saw a notable increase, rising to ₹2,398 Cr compared to ₹1,614 Cr in the previous year. This increase was largely due to higher commissions paid on first-year and single premiums, highlighting Max Life's expanding distribution efforts and reliance on commission-based sales to drive growth. 

Operating expenses for the company grew to ₹4,086 Cr from ₹3,583 Cr, reflecting higher costs in key areas such as advertising and employee remuneration. Advertising and publicity expenses totaled ₹457 Cr, while employee remuneration and welfare benefits increased to ₹2,350 Cr. These expenditures indicate a strong focus on brand promotion and human resource development, though they also highlight the need for improved cost efficiency as the company continues to scale. Max Life's investment income played a pivotal role in its financial performance, with income from investments, including interest, dividends, and profits on the sale of investments, increasing to ₹7,965 Cr from ₹5,891 Cr. This growth was supported by favorable market conditions and highlights the company's prudent investment strategy. Despite strong premium and investment income growth, Max Life’s net profit in the shareholders' account decreased to ₹360 Cr, down from ₹435 Cr in the prior year. This was primarily due to rising operating expenses and commission payouts.