ADVERTISEMENT

Max Financial Services Q4 Review - Robust VNB Margin Offsets Sluggish Premium Growth: Motilal Oswal

Max Financial Services Q4 Review - Robust Value Of New Business Margin Offsets Sluggish Premium Growth: Motilal Oswal

<div class="paragraphs"><p>A person filling a form. (Photo: Scott Graham/Source: Unsplash)</p></div>
A person filling a form. (Photo: Scott Graham/Source: Unsplash)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Max Life posted a sharp growth in value of new business even as annual premium equivalent dipped 4% YoY.

Within segments, protection/non-participating grew strongly while unit linked insurance plan/PAR declined. As a result, protection mix increased in Q4 FY22.

On the distribution front, both bancassurance and proprietary channels witnessed pressure.

Max Life's VNB margin improved to 31.9% in Q4 FY22 (from 24.9% in Q3 FY22), driven by an improved pricing and higher mix of protection/non-PAR business with management guiding for margin to remain in ~25-26% range.

We expect VNB margin to sustain at 26-27% and estimate 20% annual premium equivalent compound annual growth rate over FY22-24. This would imply a 19% VNB CAGR during FY22-24E.

Click on the attachment to read the full report:

Motilal Oswal Max Financial Services Q4FY22 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.