Max Financial Services Faces Sharp Decline in Profit Despite Premium Growth

Max Financial Services reported a significant drop in net profit to Rs 6 crore in Q2, down from Rs 139 crore the previous year. Total income and expenses also fell, while Axis Max Life's renewal premium increased by 18%. The company issued Rs 800 crore in debentures to strengthen its financial position.

Max Financial Services, the promoter behind Axis Max Life Insurance, witnessed a stark decline in their consolidated net profit, dropping to Rs 6 crore for the second quarter. Last year, during the same timeframe, this figure stood at Rs 139 crore.

Moreover, the company's income took a hit, declining to Rs 9,799 crore from Rs 13,375 crore annually. In tandem, expenses followed the downward trend, reduced from Rs 13,212 crore to Rs 9,792 crore, as disclosed in a regulatory filing.

Despite the financial dip, Axis Max Life Insurance saw an 18% rise in its renewal premium, totaling Rs 9,503 crore, and new business margins improved to 23%. The issuance of Rs 800 crore in debentures aims to provide additional financial stability.

(With inputs from agencies.)