Mumbai: Private insurer Max Life Insurance Thursday reported 6 percent growth in net profit at Rs 398 crore for the six months ended September 30, on the back of steady revenue coupled with better productivity and cost efficiency.
The net profit stood at Rs 375 crore for the corresponding quarter last year, Max Life Insurance said in a release issued here.
The total premium went up marginally to Rs 2,900.88 crore for the quarter under review compared to Rs 2,872.84 crore.
However, the new business premium declined by 3.7 percent to Rs 812 crore from Rs 842.89 crore.
The renewal premium recorded a growth of 2.9 percent to Rs 2,089 crore compared to Rs 2,029.95 crore.
"While the economic and regulatory challenges continued, we continued to perform well due to our continued focus on building a successful and differentiated life insurance business to deliver the core value of long-term savings and protection in a Life Insurance contract. We are confident of a sustained growth as we continue to differentiate in the market through our advice based sales, diversified distribution channel, comprehensive product portfolio and superior customer experience through superior claims and complaint management," Max Life Insurance CEO and Managing Director Rajesh Sud said.
The company also performed well on other parameters like Assets Under Management that increased by 30 percent to Rs 19,184 crore over last year and sum assured that touched Rs 158,054 crore, an increase of 7 percent.
The life insurer also announced its maiden shareholders' dividend entailing distribution of Rs 115 crore, based on the performance of the company during the first half of the Financial Year 2012-13.
Post dividend the company has the solvency margin of 554 percent, which clearly indicates its strong and stable financial position.
This results in a solvency surplus of Rs 1,716 crore as on September 30, 2012, compared to Rs 1,073 crore on September 30, 2011, a growth of 60 percent.
The company's paid up capital (including share premium) as on September 30, 2012 was at Rs 2,127 crore.
Max Life Insurance, one of the leading life insurers, is a joint venture between Max India and Mitsui Sumitomo Insurance, leading top general insurers in the world.