According to ICRA, The life insurance sector in India is experiencing robust growth, with the New Business Premium (NBP) projected to reach ₹4.06-4.14 trillion in FY2024, up from ₹3.71 trillion in FY2023, reflecting a growth rate of 9-12% 1. Private insurers are leading this surge, demonstrating resilience amidst regulatory changes and increasing market share.
With a market capitalization of Rs 39,582.94 crore, the shares of Max Financial Services Ltd were trading at Rs 1,146.95 per share, increasing around 0.15 percent as compared to the previous closing price of Rs 1,145.20 apiece.
Brokerage Reccomdation:-
Jefferies, one of the well-known brokerages globally, gave a ‘Buy’ call on the insurance stock with a target price of Rs 1,660 apiece, indicating a potential upside of 45 percent from Wednesday’s price of Rs 1,145.20 per share.
According to Jefferies, the cooperation between Max Life and Axis Bank resulted in the company’s rebranding as Axis Max Life Insurance. This new identity is designed to increase brand memory, especially in Tier II and Tier III areas where Axis Bank has a large presence.
However, Jefferies noted that regulatory requirements on bancassurance will need to be observed, given that Axis Bank accounts for 45 percent of Max Life’s annual premium equivalent (APE).
Furthermore, Max Financial Services, the parent business of Max Life Insurance, posted strong financial results in the first half of 2025. Consolidated revenue rose to Rs 25,178 crore, a significant 30% increase over the previous year. This significant gain was fueled by increased investment income. Revenue for the second quarter increased by 14 percent, excluding investment income, to Rs 12,820 crore.
Financial performance:-
Examine the company’s financial condition, revenue zoomed by 31 percent from Rs 10,165 crore in Q2FY24 to Rs 13,372 crore in Q2FY25, and during the same time frame, net profit dipped by 18 percent from Rs 433 crore to Rs 491 crore.
Sustainable Growth;-
In Q2 FY ’25, individual adjusted first-year premium grew by 34%, surpassing private sector and industry growth rates of 24% and 21%, with a two-year CAGR of 25%. Total APE rose 31%, driven by over 20% policy growth and balanced contributions from proprietary and partnership channels.
Proprietary channels saw 45% growth in Q2 and 51% in H1 FY ’25, supported by frontline sales productivity and an expanded agent pool. Digital channels grew 59%, leading in protection and savings. Partnership channels delivered 22% Q2 growth, while the group credit life business expanded 34% in H1 despite competition.
Company Profile:-
Max Financial Services Limited is an India-based company, which operates as a holding company for Max Life Insurance Company Limited. The Company is engaged in the business of investments and providing management advisory services. The Company’s segments include Life Insurance and Business Investments.
Written by:- Abhishek Singh
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