Margins for full year in 27-28% range and will improve going forward: Max Life Insurance MD

economictimes.indiatimes.com:

Prashant Tripathy, MD & CEO, Max Life Insurance, says: “We finished our year last year at a little over 31% margin and ever since this year began, I have been saying that this kind of margin for Max Life Insurance will be unsustainable and the guidance that we have given to the market for the full year is between 27% to 28%. Where we are right now is as per plan, it was supposed to be compressed. ”

You have managed to grow your APE faster than your peers. Is this performance expected to continue and which products drove the growth for you?
If you look at the quarter, the private industry average growth on collected premium basis, new sales is about 16%.

As against that, we have grown about 32% which is almost double the rate. This is an outcome of a very well thought through strategy that we deployed to drive growth in both our online, offline propriety channels, as well as with our partners, as well as focus on acquiring new partners and relationships. If I look at where we are in the business and I look at the momentum, we should continue to outperform market peers.

The share of ULIP in power saving has risen at a cost of non-par which has been consistently falling in the last two quarters. What is the strategy of product mix going forward?
Your observation is correct and that is an outcome of some of the tactical moves that we made as per our product calendar in the first half of the year.

We had two specific products that we launched in the first half of the year. One was on the PAR platform and the other one was an index-linked smallcap fund that we launched because of these two, the share of ULIP as well as the share of PAR has gone up.

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