Company Update : Max Financial Services Ltd By Motilal Oswal Financial Services Ltd
APE and VNB margins in line
* Gross premium income grew 11% YoY in 4QFY25 to INR118.6b (in line). For FY25, it came in at INR332.2b, up 13% YoY. Renewal premium rose 16% YoY to INR77.8b (in line).
* Total new business APE grew 6% YoY (in line) to INR30.4b. For FY25, it came in at INR87.7b, up 21% YoY.
* 4Q VNB grew 4% YoY (8% beat) to INR 8.5b. VNB margin came in at 28% vs. 28.6% in 4QFY24 (est. 25.8%).
* 4Q PAT stood at INR0.4b vs. a loss of INR0.5b in 4QFY24. For FY25, PAT grew 12% YoY to INR4b.
* Solvency ratio stood at 201% in 4QFY25 vs. 206% in 4QFY24.
* AUM grew 16% YoY to INR1.75t.
* The company reported EV of INR252b in FY25 with operating RoEV of 19.1% (20.2% in FY24).
* Valuation and view: MAXLIFE reported strong sequential growth in VNB margin due to a sequential decline in share of ULIPs, while the share of nonPAR savings improved QoQ during 4QFY25. The proprietary channel maintained a strong growth trajectory, led by agency, cross-sell, and ecommerce. Persistency trends improved across cohorts. We will review our estimates and TP after the earnings call scheduled for 14th May’25.
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