Max India Limited Investor Presentation February, 2014 www.maxindia.com BSE Scrip Code: 500271, NSE Ticker: MAX, Bloomberg: MAX:IN 1
MAX GROUP - OVERVIEW www.maxindia.com 2
Max Group Vision “To be the most admired corporate for service excellence” • Positive social impact • Culture of Service Sevabhav • Helpfulness • Mindfulness • Expertise • Entrepreneurship Excellence • Dependability • Business performance • Transparency • Respect Credibility • Integrity • Governance 3
Our Businesses Multi-business corporate Focused on people and service “ IN THE BUSINESS OF LIFE ” Life Insurance Healthcare Health Insurance Senior Living Protecting Life Caring for Life Enhancing Life 100% Owned; Continuing Care 74:26 JV* with Mitsui 74:26 JV* with Life 74:26 JV with BUPA Retirement Community in Sumitomo; Healthcare, SA; Finance Plc, UK Dehradun Largest non bank lead 2,000 beds private life insurer Speciality Films Corporate Social Responsibility Clinical Research 100% owned; Niche high barrier polymer films & Leather Focus on healthcare, children and the 550 active sites Finishing Foils environment * Max India currently holds 71.1% in Max Life and 66% in Max Healthcare 4
A unique investment opportunity and a resilient business model INR 100 billion+ Revenues*.. 5 Mn+ Customers..15,000 Employees.. 53,000^ Agents.. 1,900+ 1 Doctors 2 Strong growth trajectory even in challenging times; a resilient & diversified business model 3 Steady revenue growth and cost rationalization leads to strong financial performance 4 Well established board governance….internationally acclaimed domain experts inducted 5 Diversified ownership…..marquee investor base 6 Superior brand recall with a proven track record of service excellence 7 Strong history of entrepreneurship and nurturing successful business partnerships Electronic Mobile Communication Plating Medical Life Pharma Component Telephony Services Chemicals Transcription Insurance COMSAT Hutchison ATOTECH *Total Revenue for FY13, 5 ^Across Life and Health Insurance
Growth potential recognized by the market…. high pedigree investor base Shareholding Pattern as on Dec 31, 2013 Others 8.7% Mutual • Reliance MF Funds • Fidelity 10.9% Shareholding Promoter • Blackrock Concentrated 39.1% • Temasek with Marquee • Jupiter • Matthews Investors FII (Others) • New York Life 21.9% • ICICI Prudential IFC 3.9% Goldman Sachs 15.5% Number of outstanding shares : 26.55 Cr. 6
Consistent track record of strong growth across businesses with the group turning strong profits Rs Cr. Rs Cr. Operating Revenue Trend FY 08 FY 09 FY 10 FY’11 FY12 FY13 10000 Operating 3,244 4,508 5,574 6,668 7,648 8,180 8000 Revenue Investment and 6000 367 383 2,087 1,223 914 2,444 Other Income 8180 4000 7643 6668 Total Revenue 3,611 4,891 7,661 7,891 8,562 10,624 5574 4508 2000 7,859 8,320 9,633 Expenses 3,671 5,224 7,747 3244 0 Profit / (Loss) (60) (333) (86) 32 242 991* FY 08 FY 09 FY10 FY11 FY12 FY 13 before Tax Rs Cr. Profitability Trend FY 08 FY 09 FY 10 FY11 FY12 FY13 1200 1000 1,537 1,312 1,993 1,944 2,513 2,903 Net Worth 800 991 552 347 440 507 549 676 Loan Funds 600 400 Net Fixed 718 930 965 1,017 1,256 1,361 200 Assets (86) 242 0 Treasury 32 1,261 413 909 540 397 409 -200 (60) Corpus -400 (333) FY 08 FY 09 FY10 FY11 FY12 FY 13 3,575 5,405 10,121 13,836 17,215 20,458 Life Ins. AUM 7 *Investment & Other Income and PBT for FY13 includes income from stake sale in Max Life amounting to Rs. 802 Cr and Rs.794 Cr, respectively.
MAX LIFE INSURANCE COMPANY (Max Life) www.maxnewyorklife.com 8
The Essence of our chosen Strategy Our objective To be the most admired life insurance Sources of competitive advantage company in India with sharp focus on financial metrics ”Build a robust multi- channel distribution architecture while Max Our approach To serve the long-term savings and Life’s proprietary high protection needs of mass affluent+ quality agency will customers through a high quality agency remain the core supplemented by our privileged distribution channel.” bancassurance partnership Key choices RECREATE GROW TURBOCHARGE OPPORTUNISTIC REDUCE � High quality � Privileged banc- � Product � New PD deals � Cost “platinum assurance development � Group business – Driving cost standard” agency relationship with process management � Discover growth that we were Axis Bank � Change – known for options for the Lowering � Expand management and future costs of bancassurance governance agency � Persistency management 9
Par products fill the void left by withdrawn non-par products, ULIP share remained stable Product Mix Apr – Dec’12 Apr – Dec’13 Par Non Par ULIP Max Life 75% 14% 12% 70% 16% 14% Reliance Life 43% 35% 22% 55% 30% 15% Bajaj Allianz 70% 3% 27% 70% 7% 23% SBI Life 30% 30% 40% 32% 31% 37% Birla Sunlife 0% 55% 45% 21% 38% 41% Kotak Life 25% 35% 40% 15% 40% 45% HDFC Life 36% 4% 60% 40% 8% 52% ICICI Pru 6% 43% 51% 14% 24% 62% � With the launch of new products from various insurers, significant change in product mix is expected starting January’14. � Several players witnessed a drop in their non-par contribution in Oct-Dec'13 as index linked products were withdrawn on Sep 30th. � ULIP share (~40% for above top players combined) remained stable despite the withdrawal of NAV Guaranteed products. � Non-par index linked products (which have been phased out in Sep’13) were pushed by several major players (e.g. ICICI Pru, Birla Sunlife) in order to drive short term new business margins 10 SOURCE: Market Intelligence
Max Life continues to perform better than the private industry on agency efficiency parameters Average Agent Average Branch Apr-Sep’13 Average Agent Case Rate Productivity Productivity � Lakhs � � � � � � � ` 000s Insurer 2012 2013 2012 2013 2012 2013 Max Life 0.45 0.40 10.5 10.7 19.2 19.8 SBI Life 0.37 0.39 7.0 10.0 10.8 14.2 Kotak Life 0.15 0.19 3.7 5.2 7.2 8.5 Reliance Life 0.26 0.27 2.5 5.1 3.5 6.7 ICICI Pru 0.14 0.12 4.4 4.9 8.1 13.1 HDFC Life 0.16 0.20 3.4 4.6 7.8 6.4 Tata AIA 0.13 0.17 3.4 4.6 6.5 8.5 Metlife 0.20 0.14 6.0 4.5 8.1 6.2 Bajaj Allianz 0.20 0.18 2.8 4.2 6.4 6.6 Birla Sunlife 0.20 0.18 2.9 3.9 7.1 6.9 Note: Agency productivity calculated using FYP (100% SP) 11 SOURCE: Market Intelligence & Internal Estimates
Max Life well positioned for the transformation � Agency base at 43,000+ agents Highly productive agency � FY 13 Average case size at ~Rs. 28,000 with average case rate ~0.45 model and best in class � Need based insurance sales training � 400+ trainers on board Comprehensive product � Product mix for 9MFY14: Par 71%, Non-par 15%, ULIP 14% portfolio with an enduring � Long tenor products (21 Yr) & a young customer profile (35 Yr) customer base � First life insurer to disclose Embedded Value; EV for FY13 at Rs. 3,756 Cr. grows 10% y-o-y pre-dividend Disclosures ahead of competition � Implied NBM on APE* for FY13 at 21.8% v/s 17.8% in FY 12 � Max Life’s share of private sector grows to 10.2% in 9MFY14; � Assets under Management at Rs. 21,132 Cr. as at Dec 31, 2013, grow 15% y-o-y � Over 3.6 million polices in-force with Sum assured touching Rs. 187,000 Cr. Other key drivers � Business capitalised at Rs. 2,127 Cr. as at Dec 31, 2013; solvency surplus of Rs. 2,127 Cr. and solvency margin of 530% � Paid interim dividend of Rs.128 Cr to shareholders for H1FY14 after paying dividends of 259 Cr dividends for FY 13 (post DDT) � Ranked 2nd in Insurance Industry for India's Best Companies to Work for 2012 by Great Place to Work and Economic Times � Won the 6th National Conference & Competition on Six Sigma, 2012, held by the Confederation of Indian Industry (CII) for the Green Belt project "Power of Speed - Settlement of Claims within 10 days” � Accreditations & Awards Awarded the 6th AIMIA Loyalty Award in the category 'Financials - Non Banking Financial Services Sector'. � Silver EFFIE Award in 2012, for the 'Aapke Sachche Advisor' campaign. Organized by The Advertising Club Bombay in India, � QCI DL Shah Awards for Best Six Sigma Project on economics of Quality - 2012 **APE – Adjusted Premium Equivalent (Annualized First Year Premium adjusted for 10% of Single Premium; Limited Premium valued at 50%). 12
MAX HEALTHCARE (MHC) www.maxhealthcare.in 13
Recommend
More recommend
