According to The Economic Times, Sumit Madan, MD & CEO of Axis Max Life, emphasized the company's strategic shift toward protection and annuity products. The insurance executive noted that while the industry is evolving, insurance remains perceived as primarily a savings and tax product. Axis Max Life is focusing on making protection and annuity more relevant across both proprietary and partnership channels, targeting growth of 15% or 16% in these segments. The company's strategic focus has proven highly effective, with protection business growing 57% during the quarter and accounting for 15% of APE. As Madan explained, "Coming from a bank, I always felt these are the kind of products that we have to sell. When you come from outside the industry, you look at how penetration can improve and what is not working."
Latest data from ETBFSI reveals that Indian life insurers achieved significant margin expansion in Q1 FY27 despite GST-related challenges. Axis Max Life reported 33% growth in VNB with VNB margin expanding by more than 300 basis points, supported by higher operating leverage and favorable interest rate movements. The company's APE increased 15% while maintaining strong growth momentum. This performance aligns with industry-wide trends, as Aditya Birla Sun Life Insurance reported 153% year-on-year increase in VNB to ₹1.7 billion with VNB margin nearly doubling to 15.1% from 7.5% earlier. The product mix shifted towards annuity and protection products, which grew 219% and 50% respectively. Madan highlighted the industry's evolution, stating that "Covid taught us that many policyholders are underinsured. The fundamental question is: If I die tomorrow, will my family have enough money to maintain the lifestyle?"
As reported by The Economic Times, Axis Max Life demonstrated strong financial performance during the June quarter. The company reported a 17% rise in individual adjusted first-year premium and achieved a 33% increase in value of new business (VNB). The VNB margin improved to 23.2%, while the company's market share among private peers rose 13 basis points. The latest Q1 FY27 results show even stronger momentum, with VNB growth of 33% and APE growth of 15%, positioning the company well against industry benchmarks. Notably, the company's annuity sales grew 116%, contributing significantly to the overall performance and demonstrating the effectiveness of the strategic focus on protection and annuity products.
According to ETBFSI, protection business remained a key growth driver across insurers, with protection APE rising 57% at Axis Max Life, 43% at HDFC Life, 60% at ICICI Prudential Life and 19% at SBI Life. The 57% increase in protection business at Axis Max Life contributed significantly to the company's overall performance, with higher rider attachment also supporting protection growth following the GST exemption. This trend reflects the industry's strategic shift toward protection products, with the COVID-19 pandemic reinforcing the importance of adequate insurance coverage. As Madan noted, "We've started focusing very sharply on the young Indian middle clas," indicating a targeted approach to market segmentation.
As reported by ETBFSI, private life insurers are expected to deliver 14-19% operating RoEV over FY2027-29, while APE growth is expected to remain in the 14-20% range. The Q1 performance indicates that protection growth, product mix and operating leverage are becoming important drivers of margin expansion for private life insurers, helping offset the near-term cost impact of the GST exemption. The industry's focus on protection and annuity products, combined with favorable product mixes and improving operating leverage, positions companies like Axis Max Life well for sustained growth in the coming years. Madan's strategic emphasis on making insurance products more relevant to Indian consumers, particularly through protection and annuity offerings, positions the company advantageously in the evolving market landscape.
