Max New York Life posts net profit of Rs 375 crore

Max New York Life Insurance (MNYL) would be launching three traditional plans over the next few months but the insurer did not specify what kind of plans they could be. Releasing the insurer’s earnings report, its chief executive officer and managing director Rajesh Sud said Max New York has an accumulated loss of Rs 500 crore as on dates that it expects to wipe off in the next financial year.

MNYL recorded an 8 per cent increase in gross revenue to Rs 2,873 crore for the first six months of 2011-12, compared with a gross revenue of Rs 2,665 crore in the first half a year ago. Net profit stood at Rs 375 crore for the first half of this year, against a loss of Rs 50 crore in the year-ago period. The company broke even in FY2010 with a net profit of Rs 24 crore, which was Rs 283 crore in FY11.

MYNL’s AUM stood over Rs 14,708 crore, a growth of 20 per cent over H1FY10, while solvency margin increased to 456 per cent. The company’s paid up capital (including share premium) as on September 30, 2011, was Rs 1,976 crore.

“The impressive rise in net profit was a result of continued revenue growth coupled with better productivity and cost efficiency. The company does not require additional capital with solvency margin at 456 per cent,” Sud said.

The life insurer’s cost ratio improved 11 percentage points, compared with September 2010 to 31 per cent in September 2011.