In-line performance; VNB margin contracts 1,200bp YoY

Company
11 Mar 2024
5 Min read 
  • MAX Financial Services reported a decent performance in 3QFY24 with total APE growing 19% YoY.
  •  Absolute VNB declined 17.5% YoY and VNB margins contracted significantly by 1,200bp YoY.
  •  The margin contraction was due to changes in the product mix, with a decline in non-par and an increase in ULIPs.
  •  MAXLIFE will continue to focus on growth with VNB margins expected to be around 26-27%.
  •  The company received IRDAI approval for a capital infusion of INR16.12b by Axis Bank.
  •  Maintain Neutral rating with a TP of INR1,040, premised on 2.0x Mar26E EV and a holding company discount of 20%.
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