Higher Margins Bode Well

Max Financial Services owns 80 per cent of Max Life, which is one of India’s largest private life insurers.

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Over time, Max Life has grown faster than the industry, having shifted its focus toward higher-margin products, such as nonparticipating (non-par) savings and protection insurance. These form a large part of its business, and have helped it earn better margins, reduce dependence on unit-linked insurance plans (Ulips) and remain resilient even when interest rates fall.

Max Life has a strong bancassurance with Axis Bank, but is also expanding its presence with other banks, while simultaneously building its own distribution network through the agency channel. This dual approach of using both banks and agency makes it less vulnerable than peers who rely on one channel.