Axis Max Life's VNB increases 21% YoY; individual adjusted first year premium grows 12% YoY in H1 FY'27

What happened

Axis Max Life's Value of New Business rose 21% year on year to Rs.1,180 crores in H1 FY'27, while individual adjusted first year premium grew 12% to Rs.4,368 crores. Its VNB margin expanded 210 basis points, which means profit per sale widened, to 25.4%, and renewal premium rose 18% to Rs.11,247 crores.

Confirmed

Global impact / market context

Value of New Business measures expected profit from newly sold policies, so a 21% rise plus a wider margin means each sale is more profitable. That supports future earnings for the parent, Max Financial Services. Faster renewal premium growth also gives steadier cash available for expenses and payouts.

Analyst inference

Growth was led by protection and retirement products, with pure retail protection up 37% and annuities up 130% year on year. These segments typically carry different profit per sale than savings products, so the margin gain suggests a richer sales mix rather than only higher volumes.

Analyst inference

What to watch

1. Watch whether protection and retirement growth continues, since the company said VNB margin expansion was supported by these segments and that retirement remains a potential long-term growth opportunity. Confirmed
2. Watch how SMART RISE, the new plan combining lifelong income with a market linked variable annuity option, sells, because product uptake could shift the mix of new business and future profit per sale. Proposed
3. Watch renewal premium collection and expense trends, since renewal premium rose 18% to Rs.11,247 crores and steadier collections fund costs and payouts, affecting cash available at Max Financial Services. Analyst inference

Evidence

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