New Delhi, Nov 5 (IBNS) Max Life Insurance, one of the leading life insurance companies in India, on Monday announced its maiden interim dividend of 5.1% for its shareholders.
The decision was taken during the recently held Board Meeting.
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 crores, post Dividend Distribution Tax (DDT) of Rs. 16 crore, will be distributed in proportion to shareholding as of Nov 1, 2012.
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 crores.
Commenting on the first ever dividend to its shareholders, Rajesh Sud, CEO & Managing Director, Max Life Insurance said, "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.
"We believe that it is time for us to share the outcomes of our success with our shareholders, who have patiently supported our growth strategy since the Company's inception in 2000," said Sud.
Max Life Insurance enjoys a strong financial position which is reflected in its solvency margin.
Even after distribution of the interim dividend, the company's solvency ratio will remain in excess of 550%, against the IRDA mandatory requirement of 150%, and a solvency surplus of more than Rs.1,500 crore.
Max Life Insurance has announced interim dividend after a sustained track record of profitable growth.
During the first half of the financial year 2012 - 13, the company has maintained its private market share at 9.5 per cent placing it fourth amongst the private life insurance companies.
The company has a track record of profitable growth. In the Financial Year 2011-12, the company recorded shareholders' profit of Rs. 460 crore up from Rs.194 crore in the Financial Year 2010-11.