Private insurer Max Life Insurance on Thursday reported 6% growth in net profit at Rs398 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 Rs375 crore for the corresponding quarter last year, Max Life Insurance said in a release issued here.
The total premium went up marginally to Rs2,900.88 crore for the quarter under review compared to Rs2,872.84 crore.
However, the new business premium declined by 3.7% to Rs812 crore from Rs842.89 crore.
The renewal premium recorded a growth of 2.9% to Rs2,089 crore compared to Rs2,029.95 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% to Rs19,184 crore over last year and sum assured that touched Rs158,054 crore, an increase of 7%.
The life insurer also announced its maiden shareholders' dividend entailing distribution of Rs115 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%, which clearly indicates its strong and stable financial position.
This results in a solvency surplus of Rs1,716 crore as on September 30, 2012, compared to Rs1,073 crore on September 30, 2011, a growth of 60%.
The company's paid up capital (including share premium) as on September 30, 2012 was at Rs2,127 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.