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.
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