MUMBAI: Max Life Insurance today reported 20 per cent decline in net profit at Rs 528 crore during financial year 2017-18, due to high investment income.
The private life insurer had posted a net profit of Rs 660 crore in FY17, the company said in a release.
"Current year's profit is less due to non-repeatable high investment income recorded in the previous financial year," it added.
The insurer recorded a growth of 31 per cent in the value of new business at Rs 656 crore. Its gross written premium rose by 16 per cent to Rs 12,501 crore, compared with Rs 10,780 crore, while the new business premium grew by 19 per cent to Rs 4,349 crore, against Rs 3,666 crore in 2016-17.
The company's renewal premium grew by 15 per cent at Rs 8,152 crore, compared with Rs 7,114 crore. Its assets under management grew by 18 per cent to stand at Rs 52,237 crore as on March 31, 2018, compared with Rs 44,370 crore as on March 31, 2017.
"During the year we not only recorded increase in case size but also covered more lives than in past years, which resulted in a robust growth in new business. We continued our leadership position in online term plans as well as claims management," said Rajesh Sud, executive vice chairman and managing director, Max Life Insurance.
The insurer's solvency ratio was at 263 per cent, significantly higher than the regulatory requirement of 150 per cent, while its claims ratio grew to 98.26 per cent in FY18, from 97.81 per cent in FY17.
Max Life Insurance is a joint venture between Max Financial Services and Mitsui Sumitomo Insurance.