By: Business Desk
Last Updated: July 27, 2022, 15:00 IST
New Delhi, India
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Max Life Insurance Company Ltd. on Monday, July 25, announced a participating bonus of Rs 1,420 crore for the financial year 2021-2022, the highest ever declared for its eligible policyholders. With this, Max Life has surpassed the milestone of Rs 10,000 crore of declared bonus for participating customers since inception, the insurer said in a statement on Monday. The life insurer’s annual bonus has increased at a 5-year compound annual growth rate (CAGR) of more than 11 per cent, it further said.
Bonus is the share of profits generated by the company’s participating policyholder’s funds, which are added to their guaranteed maturity benefits, thus enhancing the corpus. This was the 20th consecutive annual bonus that Max Life has declared, which is 9.05 per cent higher than the preceding financial year.
The declared annual bonus will be added to approximately 21 lakh eligible participating policyholder’s benefits, aiding their long-term financial goals, Max Life said. The company further said that it has consistently announced bonuses for eligible policyholders over the past two decades that “underlines its commitment to customers and superior risk-adjusted return focus.”
Over the past year, Max Life has been at the forefront of driving product innovation and creating first-in-industry propositions. The life insurer has also strengthened participating propositions that made up 34 per cent of the proprietary channel product mix in FY21.
Commenting on the development, Prashant Tripathy, MD and CEO of Max Life, said, “Despite pandemic-related challenges and its effect on markets, Max Life delivered strong business outcomes and declared the highest-ever policyholder bonus by maintaining a focused approach towards sustainable and organic growth.”
“It is a mark of our highly competitive fund management capabilities that we have been able to surpass the Rs 10,000 crore milestone of declared bonus since inception,” he said
Max Life’s participating fund has reached approximately Rs 54,650 crore of assets under management (AUM) and has grown over 12 times in a decade. With a 5-year CAGR of 21 per cent, Max Life’s participating fund is amongst the top participating fund (by size) in the private life insurance space. The debt assets of participating fund have yielded consistent and stable returns over the last five years. Over the past year, Max Life’s individual annual premium equivalent (APE) grew by 12 per cent to Rs 5,514 crore in FY22.
Max Life Insurance Company Limited is a Joint Venture between Max Financial Services Limited and Axis Bank Limited. The company offers comprehensive protection and long-term savings life insurance solutions. As per public disclosures and annual audited financials for FY2021-22, Max Life has achieved a gross written premium of Rs 22,414 crore.
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By: Business Desk