Max New York Life on Stable Ground

Max New York Life, one of the leading private life insurance companies, expects to turn profitable in this financial year. The company which would have a total premium collection of approximately 5000 crores in this current fiscal has been relatively less affected by the new ULIP regulations as they have focussed on traditional products.  86% of their sales come from traditional products.  Max New York Life also has a high renewal premium to new premium ratio of about 2:1, whereas the overall industry ratio is almost 1.2:1. This is because they have a higher persistency/renewal ratio, and also because they have a lower component of single premium sales in their product mix. Max also has a strong distribution arrangement going with Axis Bank, wherein Axis Bank has picked up a stake in Max and offers Max's life insurance products to its customer base.