Max Financial Services Reports 18% Growth in H1, Maintains Margin Guidance Despite GST Impact

Max Financial Services , a leading player in the Indian insurance sector, has reported strong growth in the first half of the fiscal year, outpacing the industry despite recent regulatory changes. The company's performance demonstrates its resilience and strategic focus on key growth areas.

Strong Growth and Market Share Expansion

Max Financial Services achieved an impressive 18% growth in individual adjusted first-year premium during the first half. This performance significantly outpaced the private sector growth of 8% and the overall industry growth of 2%. As a result, the company expanded its market share to 10.1%, solidifying its position in the competitive insurance landscape.

Financial Highlights

The company reported robust financial metrics for the first half:

Metric	Value	Growth
Embedded Value	INR 26,895.00 crore	15% YoY
Gross Written Premium	INR 15,490.00 crore	18%
Renewal Premium	INR 9,503.00 crore	18%
Individual New Business Sum Assured	INR 2.16 lakh crore	25%

Navigating GST Impact

The recent changes in Goods and Services Tax (GST) regulations have posed challenges for the insurance industry. Max Financial Services reported a 300-350 basis points margin impact due to these changes. However, the company remains confident in its ability to offset this impact through various strategic initiatives:

Distribution negotiations
Cost optimization measures
Operational efficiencies

Despite the GST-related headwinds, Max Financial Services is maintaining its earlier sales and margin guidance, demonstrating its adaptability and strong business fundamentals.

Product Mix and Channel Performance

The company's product mix remains well-balanced, contributing to margin expansion:

Participating products: 13%
Annuities: 8%
Non-par savings: 28%
Protection and health: 13%
ULIP: 37%

Max Financial Services reported strong growth across various distribution channels:

Proprietary channels grew by 22% in Q2
Partnership business, including bancassurance, grew by 10% in Q2
The Axis Bank channel showed a 7% growth

Focus on Protection and Digital Initiatives

The company has seen significant growth in its protection business, with retail protection and health segment contributing 13% of overall sales and showing 36% growth. Max Financial Services is also leveraging digital platforms to enhance customer experience and operational efficiency, including the launch of a mobile app and the implementation of AI-driven tools for underwriting and customer service.

Outlook

Despite the challenges posed by regulatory changes, Max Financial Services remains optimistic about its growth prospects. The company's focus on product innovation, customer-centric approach, and digital transformation initiatives positions it well for sustained growth in the evolving insurance market.

As the insurance industry continues to navigate regulatory shifts and market dynamics, Max Financial Services' agility and strategic focus on key growth areas are likely to be crucial factors in maintaining its strong performance and market position.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.09%	+2.71%	+9.55%	+20.77%	+35.72%	+171.24%

Max Financial Services Limited (MFSL), a key player in India's life insurance sector, has reinforced its commitment to robust growth during a recent conference call update. The management of Max Financial has confirmed their growth outlook of 15-17% for the fiscal year 2026, signaling confidence in the company's strategic direction and market position.

Strong Performance in H1 FY26

The reaffirmation of the growth outlook comes on the heels of impressive first-half results for FY26:

Consolidated revenue (excluding investment income) grew by 18% year-on-year to ₹15,090.00 crores
Individual Adjusted First Year Premium increased by 18% to ₹3,891.00 crores
Gross Written Premium rose by 18% to ₹15,490.00 crores
Value of New Business (VNB) saw a significant 27% growth

Key Financial Highlights

Max Financial's subsidiary, Axis Max Life Insurance, reported several notable achievements:

Metric	H1 FY26 Value	YoY Growth
Individual Adjusted FYP	₹3,891.00 crores	18%
Total APE	₹4,175.00 crores	15%
Renewal Premium	₹9,503.00 crores	18%
Gross Written Premium	₹15,490.00 crores	18%
Embedded Value	₹26,895.00 crores	15%
New Business Margins	23.30%	210 bps improvement

Market Share and Strategic Growth

Axis Max Life has outpaced the private life insurance industry, gaining 83 basis points in private market share to reach 10.1% in H1 FY26. This growth has been driven by:

Robust performance in offline proprietary channels
Successful scaling of new partnerships
Onboarding of 31 new partners in H1 FY26 (16 retail and 15 group business partners)

Management Commentary

Sumit Madan, CEO and Managing Director of Axis Max Life, commented on the company's performance: "In the first half of FY'26, Axis Max Life continued to deliver strong growth in Individual Adjusted First Year Premium and Value of New Business, led by our proprietary channels and further supported by our partnership verticals. This has resulted in a market share of 10.1%, underscoring the strength of our balanced channel mix and our ability to nurture every relationship."

Future Outlook

The reaffirmation of the 15-17% growth outlook for FY26 suggests that Max Financial is confident in its ability to maintain its growth trajectory. The company's focus on expanding its distribution network, improving product mix, and enhancing customer-centric initiatives appears to be yielding positive results.

Conclusion

Max Financial's robust performance in H1 FY26 and the management's confident outlook for the full fiscal year indicate a positive trajectory for the company. With its strategic focus on balanced growth across channels and products, Max Financial seems well-positioned to capitalize on the growing life insurance market in India.