Max Life Insurance announces maiden interim dividend of 5.1 per cent

MUMBAI: Private insurer Max Life Insurance today announced its maiden interim dividend of 5.1 per cent for its shareholders.

The decision was taken during board meeting held recently, the company said in a release issued here.

Max Life Insurance has decided to distribute Rs 115 crore based on the performance of the company during the first half of the financial year 2012-13.

The interim dividend of Rs 99 crore, post Dividend Distribution Tax (DDT) of Rs 16 crore, will be distributed in proportion to shareholding as of November 1.

This entitles Max India to dividend of Rs 70 crore, while Mitsui Sumitomo Insurance will be entitled to Rs 26 crore and Axis Bank Rs 3 crore.

"Over the past 12 years, our shareholders have invested Rs 2,127 crore in Max Life Insurance to support the growth of the company.

"We are confident of our profit trajectory based on our strong business performance that has resulted in a gain of more than 3 percentage points in private market share over the last couple of years," Max Life Insurance CEO and Managing Director Rajesh Sud said.

After distribution of the interim dividend, the company's solvency ratio will remain in excess of 550 per cent against the regulatory requirement of 150 per cent, and a solvency surplus of more than Rs 1,500 crore.

The company has maintained its private market share at 9.5 per cent placing it fourth amongst the private life insurance companies.

Max Life Insurance's recorded profit of Rs 460 crore during FY 2012, up from Rs 194 crore in the Financial Year 2010-11.

The private insurance company is a joint venture between Max India, a leading Indian multi-business corporate, and global insurance player Mitsui Sumitomo Insurance.