MAX Financial Services (MAXLIFE) has reported strong performance in the second quarter of FY25, with a 31.3% year-on-year increase in new business annualized premium equivalent (APE) to INR 21.7 billion.

APE growth for the first half of FY25 was 31% year-on-year, totaling INR 36.2 billion.

The company also achieved a 23.1% year-on-year growth in value of new business (VNB) to INR 5.1 billion in Q2, and a 16% year-on-year increase to INR 7.7 billion in the first half.

VNB margins expanded significantly in Q2 FY25, rising to 23.6% from 17.5% in Q1 FY25, driven by operating leverage and volume growth.

Management aims to maintain double-digit VNB growth and margins within the range of 23-24% for FY25.

However, the company has adjusted its VNB margin assumptions due to unfavorable product mix trends, specifically the higher share of unit-linked insurance plans (ULIPs).

Motilal Oswal has reiterated a Neutral rating on MAX Financial Services, with a target price of INR 1,300, based on a valuation of 2.3 times the estimated September 2026 embedded value and a 20% holding company discount.