Max Financial Services Limited (MFSL) has announced a significant development in the insurance sector that could potentially boost affordability and reduce the protection gap in India. The company disclosed that the Goods and Services Tax (GST) Council has approved an exemption from GST for individual life insurance policies, set to take effect from September 22, 2025.

Impact on Axis Max Life Insurance

MFSL expects this regulatory change to have a minimal impact on its material subsidiary, Axis Max Life Insurance Limited. According to the company's disclosure, the effect on Axis Max Life's embedded value is anticipated to be less than 1.00%.

Potential Benefits for Consumers

The GST exemption is expected to bring several advantages to the insurance landscape:

1. Improved Affordability: Max Financial Services believes that this change will make insurance products more accessible to consumers, particularly in the pure protection business segment.

2. Reduction in Protection Gap: By making life insurance policies more affordable, the company anticipates a decrease in the protection gap within the country.

Preparation for Transition

In light of this upcoming change, Max Financial Services has stated that it is actively working on preparing its systems and processes to ensure a smooth transition when the exemption takes effect.

Official Disclosure

The company made this announcement in an official disclosure to the stock exchanges on September 5, 2025, in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Piyush Soni, Company Secretary & Compliance Officer of Max Financial Services Limited, signed the disclosure, emphasizing the company's commitment to maintaining information symmetry for all stakeholders.

This development in the insurance sector could potentially reshape the landscape of life insurance in India, making it more accessible to a broader segment of the population while having a minimal impact on the financial metrics of insurance providers like Axis Max Life.

Max Financial Services Limited has unveiled an ambitious growth strategy, setting its sights on achieving ₹1,000 crore in annual profit and consolidated assets under management (AUM) of ₹1.6 lakh crore by the fiscal year 2027. The company's plan focuses on key areas of expansion and product development in the insurance sector.

Strategic Focus Areas

The company's growth strategy centers around four main pillars:

1. Protection Products: Max Financial aims to strengthen its position in the protection segment, which typically offers higher margins.

2. Non-Participating Policies: There will be an increased emphasis on non-participating policies, which do not share in the company's profits but often provide more predictable returns for the insurer.

3. Digital-Led Bancassurance: The company plans to leverage digital technologies to enhance its bancassurance channel, potentially increasing efficiency and reach.

4. Axis Partnership: Max Financial intends to capitalize on its partnership with Axis Bank, which could provide a significant boost to distribution capabilities.

Financial Performance

The company's Q1 FY26 results reflect positive momentum towards these goals:

• Individual Adjusted First Year Premium grew by 23% year-on-year to ₹1,553.00 crores.
• Gross Written Premium increased by 18% to ₹6,397.00 crores.
• Value of New Business (VNB), a measure of profitability, rose by 32% to ₹335.00 crores.
• New Business Margin improved by 260 basis points to 20.10%.
• Assets Under Management (AUM) reached ₹1,83,211.00 crores, up by 14%.

Market Position

Max Financial has made significant strides in market share:

• Private industry market share increased by 121 basis points to 10.00%.
• Maintained Rank 3 in Individual Sum Assured with a growth of 26%.

Product and Channel Performance

• Retail Protection and Health APE grew by 36% to ₹218.00 crores.
• Annuity APE increased by 40% to ₹114.00 crores.
• Proprietary channels saw an 11% growth in APE, driven by an 18% increase in offline proprietary business.

Digital Initiatives

Max Financial is also focusing on digital transformation:

• Launched the "Axis Max Life app", a comprehensive digital solution for customers.
• The app aims to simplify life insurance management, promote holistic wellness, and enhance overall customer experience.

Customer-Centric Approach

The company continues to prioritize customer satisfaction:

• Maintained a leading position in the life insurance industry with a claims paid ratio of 99.70%.

As Max Financial Services Limited pursues its ambitious targets for FY27, the company's multi-faceted strategy, focusing on product innovation, digital transformation, and strategic partnerships, appears to be gaining traction. The strong Q1 FY26 performance provides a solid foundation for the company's growth trajectory in the coming years.