Participating policy - Annual Benefit Statement - Key Parameters

Key details related to the Annual Benefit Statement for policyholders of participating policies issued by Axis Max Life Insurance Limited, henceforth referred to as “Company”

The Asset Share for a group of participating policies at a given point in time is the accumulation of the premiums received plus investment income earned from the inception of those policies, less deductions like claim payments, commission, expenses, tax, cost of capital/guarantee charges, contribution from miscellaneous profits/losses (e.g. profits from surrenders/lapses) and any transfers to shareholders.

• The Premiums received component represents the amount of premium paid by the policyholder till the date of computation of asset share.
• Investment income represents the income earned from the assets of the participating fund. The company invests in line with the relevant Regulations issued by the “Insurance Regulatory and Development Authority of India” (IRDAI) with the goal of earning superior risk adjusted returns.

The participating fund is invested in primarily two asset classes:
• Fixed Interest Securities (like Government bonds and corporate bonds), and
• Growth assets (like stocks, real estate etc).
For the financial year 2024-25, the Company’s Participating fund achieved an overall return of 9% per annum.


• Expenses charged to the participating fund are as per the actual expenses incurred by the Company and are charged to different lines of businesses basis Company’s Expense allocation policy, approved by the Board from time to time. Hence, the expense allocation to participating business could vary depending on multiple factors like type and volume of business, distribution channel mix etc.


• Actual Claim payouts are deducted from the Asset Share. These claims include death, surrender and maturity payouts.


• Policyholder Bonuses are usually declared annually, reflecting the performance of the participating fund. Based on the bonus option available, these bonuses get paid in cash each year, or accumulate under the reversionary bonus option, which then get paid out when policy matures or exits (death or surrender).
  
  Bonus earning capacity is determined by comparing the asset share with expected future cash flows at the product level. Actual performance is regularly monitored and compared with future expectations, and accordingly the bonus rates are reviewed on an annual basis.
  
  Historical bonus details, where applicable, can be found in previous annual bonus statements issued to policyholders or accessed through the customer’s login portal.
  
  In addition, Company’s Participating Fund has an accumulated surplus of ₹4,231 Cr in the participating fund as of March 31, 2025. This accumulated surplus or also known as Fund for Future Appropriation (FFA) is maintained primarily to ensure the financial resilience of the participating fund.
  
  The policyholder returns earned till date have been aligned with the actual performance of the Company’s participating fund. Future policyholder returns are expected to be consistent with the benefit illustration provided at the time of sale and will continue to reflect the actual performance of the participating fund.
  
  For reference, the chart below presents the gross participating fund returns achieved over the past five years.