Max Financial

Max Financial Services is focused on amplifying core priorities: strengthening customer-first approach, accelerating digital and data-led growth, deepening partnerships, and driving sustainable long-term value. The company has made strong progress on these fronts, with execution discipline and nurturing culture. Recent GST changes have improved affordability of insurance products, with full benefits passed to customers, supporting stronger demand, especially in the protection segment.

Individual adjusted first year premium grew 18% in H1 FY26, more than double the private sector growth of 8%, improving private market share by 83 basis points to 10.1%. Proprietary channels, including online business with a 68% 3-year CAGR and offline proprietary with 26% APE growth in Q2 FY26, remain a cornerstone. Partnership business grew 10% in Q2 APE terms, with new partnerships contributing around 5% of individual APE. The NRI segment consistently contributes 13% of total sales, and the company received SEZ approval to establish an office in GIFT City.

Non-participating savings products continue strong performance. Retail protection and health segment grew 36% in H1 FY26, contributing 13% of overall sales, with a 37% rider attachment rate. Group credit protection business grew 24% in Q2. Annuity business saw significant growth of 85% in H1 FY26 and 122% in Q2 FY26. The overall balancing of product mix, particularly the shift in Axis Bank's ULIP mix to 50% from over 60%, expanded margins from 23.6% in Q2 FY25 to 25.5% in Q2 FY26, leading to a 27% VNB growth in H1 FY26.

The company maintains market-leading retention and satisfaction metrics, with 13-month persistency at 83% and 25-month persistency at an all-time high of 76% in Q2 FY26. Net Promoter Score improved to 57, and grievance incidence rate improved to 38. Digital transformation efforts, including a mobile app with over 4 lakh installations and high ratings, and the mSpace platform with 90% adoption, have enhanced customer experience and operational efficiency. AI-driven tools like cross-sell engines and income estimation models are improving sales and underwriting processes, while GenAI initiatives are scaling across the enterprise.

At the MFSL level, revenue excluding investment grew 18% in H1 to INR 15,090 crore, though consolidated PAT was INR 92 crore, lower than last year due to Ind AS fair value changes and GST expense. Axis Max Life's gross written premium and renewal premium both grew 18%. Individual new business sum assured grew 25% to INR 2.16 lakh crore. Embedded Value stood at INR 26,895 crore, a 15% YoY growth, with an Annualized Operating ROEV of 16.3%. Policyholder opex to GWP was 15.5%, growing 11%.

The non-availability of input tax credit due to recent GST changes is expected to have a short-term impact on annualized margin, estimated at 300-350 basis points on a run rate basis. Management noted that 75% of September sales were impacted, contributing 0.6% to H1 margin impact. To offset this, the company is implementing focused initiatives including distributor renegotiations, cost optimization, and operational efficiencies, and remains confident in maintaining its earlier sales and margin guidance of 24-25%.

The proprietary channel now accounts for 46% of the total business, with the remaining 54% from partnership channels. While Axis Bank channel growth was around 7%, other new acquisitions and partnerships showed over 100% growth. Management is optimistic about Axis Bank's performance in H2, expecting better numbers due to strategic changes and focus on specific verticals within the bank. The company continues to expand its distribution footprint by adding 31 new partners across retail and group segments in H1 FY26.