Motilal Oswal Stays 'Neutral' On Axis Max Life, Revises Target Price — Here's Why

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Motilal Oswal Report

Max Financial Services Ltd. stands at an inflection point, where structural initiatives, executional discipline, and strategic alignment with Axis Bank are converging to create a more resilient, high-quality life insurance franchise.

We believe the company offers a compelling growth story within the private life insurance space, underpinned by three pillars:

1. a multi-pronged distribution strategy with strengthening proprietary channels,

2. a sharper product mix that balances margin and scale, and

3. a unique transformation opportunity via the Axis-led rebranding and eventual reverse merger.

The company’s evolution from a bank-partner-led franchise to a multi-engine business is clearly underway. Over the past few years, Axis Max Life has been proactively expanding its agency and direct sales force, with significant investment in digital productivity, quality training, and performance-linked governance frameworks. These efforts are beginning to show results—proprietary channels are gaining traction, ULIP profitability has improved via rider attachment and high sum-assured issuance, and non-par products are witnessing increased demand.

With bancassurance growth likely to recover as deposit pressure eases and proprietary channels expand deeper into tier II+ markets, the medium-term annual premium equivalent growth visibility remains robust in the mid-to-high teens.

We expect the company to report FY25-27 APE CAGR of 16%.

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