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Max Financial Services Q2 Review - Modest Business Growth; VNB Margin Expands Sharply: Motilal Oswal

Max Financial Services Q2 Review - Modest Business Growth; VNB Margin Expands Sharply: Motilal Oswal

An applicant fills out a form. (Photographer SeongJoon Cho/Bloomberg)
An applicant fills out a form. (Photographer SeongJoon Cho/Bloomberg)

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Max Life reported a mixed quarter as annual premium equivalent growth remains modest, impacted by sluggish growth in protection/non-participating segment, while PAR/unit link investment plan witnessed healthy growth.

As a result, protection mix moderated over H1 FY22.

On the distribution front, the bancassurance/proprietary channel supported Max Financials' growth momentum.

Value of new business margin expanded sharply to 29.1% in Q2 FY22 (versus 19.7% in Q1 FY21), supported by improving product mix and base effect of high opex in Q1 FY22.

We expect value of new business margin to sustain at 25-26% and estimate 21% annual premium equivalent compound annual growth rate over FY21-24E.

Click on the attachment to read the full report:

Motilal Oswal Max Financial Q2FY22 Result Update.pdf

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