Private life insurer Max New York Life Insurance posted a 159 per cent growth in net profit at Rs 733 crore for the fiscal year 2012 on the back of sales of endowment and money-backed products. The profit was at Rs 283 crore in the year ago period.
Gross premium grew 10 per cent at Rs 6,391 crore (Rs 5,813 crore). The renewal premium recorded a growth of 20 per cent at Rs 4,489 crore.
During the year, the solvency margin of the company increased to 534 per cent on better reserves as compared to 365 per cent last year. The solvency surplus in FY12 stood at Rs 1,703 crore (Rs 892 crore in FY11). The company sold 5.72 million policies in FY12.
“We were the early ones to start long-term savings and protection (LTSP) policy. We have maintained the protection cover mandated by IRDA (Insurance Regulatory and Development Authority) at 10 times the sum assured,” said Ms Anisha Motwani, Chief Marketing Officer, Max New York Life Insurance.
The company's Assets Under Management (AUM) rose 24 per cent to Rs 17,215 crore (Rs 13,836 crore). Non-linked AUM grew 48 per cent also resulting in corresponding increase in investment income.
The company's outstanding claims ratio was lower at 1.6 per cent as on March 31, 2012.
Cost ratio improved to 30 per cent in FY12 as compared to 38 per cent in the previous year due to the cost management initiatives the company undertook over the last couple of years. The product mix underwent a further tilt towards traditional plans. The ULIP plans account for 47 per cent vis-à-vis 53 per cent for the traditional plans as compared with 61 per cent ULIPs and 39 per cent of the traditional plans in the last fiscal.