Max Life Insurance, one of the leading life insurance companies in India, today announced its maiden interim dividend of 5.1% for its shareholders. The decision was taken during the recently held Board Meeting. Max Life Insurance has decided to distribute Rs.115 crore, based on the performance of the company during the first half of the Financial Year 2012-13. The interim dividend of Rs. 99 crores, post Dividend Distribution Tax (DDT) of Rs. 16 crore, will be distributed in proportion to shareholding as of 1st November 2012. This entitles Max India to dividend of Rs. 70 crore while Mitsui Sumitomo Insurance will be entitled to Rs.26 crore and Axis Bank Rs. 3 crores.
Commenting on the first ever dividend to its shareholders, Mr. Rajesh Sud, CEO & Managing Director, Max Life Insurance said, “Over the past 12 years, our shareholders have invested Rs.2,127 crore in Max Life Insurance to support the growth of the company. We are confident of our profit trajectory based on our strong business performance that has resulted in a gain of more than 3 percentage points in private market share over the last couple of years. We believe that it is time for us to share the outcomes of our success with our shareholders, who have patiently supported our growth strategy since the Company’s inception in 2000.”
Max Life Insurance enjoys a strong financial position which is reflected in its solvency margin. Even after distribution of the interim dividend, the company’s solvency ratio will remain in excess of 550%, against the IRDA mandatory requirement of 150%, and a solvency surplus of more than Rs.1,500 crore.
Max Life Insurance has announced interim dividend after a sustained track record of profitable growth. During the first half of the financial year 2012 – 13, the company has maintained its private market share at 9.5 per cent placing it fourth amongst the private life insurance companies. The company has a track record of profitable growth. In the Financial Year 2011-12, the company recorded shareholders’ profit of Rs.460 crore up from Rs.194 crore in the Financial Year 2010 – 11.
About Max Life Insurance Co. Ltd. (www.maxlifeinsurance.com)
Max Life Insurance, one of the leading life insurers, is a joint venture between Max India Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max India is a leading Indian multi-business corporate, while Mitsui Sumitomo Insurance is a member of MS&AD Insurance Group, which is amongst the top general insurers in the world. Max Life Insurance offers comprehensive life insurance and retirement solutions for long-term savings and protection to thirty lakh customers. It has a country-wide diversified distribution model including the countrys leading agent advisors, exclusive arrangement with Axis Bank and several other partners. Max Life Insurance is a quality business focused on delivering excellence to customers through advice based sale process, customer centric approach to business, financial stability & investment expertise and strong human capital.
In the financial year 2011-12 Max Life Insurance had a market share of 8.6%. The Company has been one of the fastest growing life insurance companies with total revenue of Rs. 6,391 crore and enterprise profit of Rs.733 crore for the Financial Year 2011-12. The Company’s capital base of Rs. 2,127 crore with a solvency margin of 534% is indicative of its financial strength and stability. As on 31st March 2012, Max Life Insurance had assets under management of Rs.17,215 crore.
*Market share basis Adjusted Individual First Year Premium