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New Delhi, Jan. 28 Max India has reported a consolidated net loss of Rs 94 crore for the quarter ended December 31, 2008, against net loss of Rs 4 crore in the corresponding period in the previous year.

The consolidated operating revenue for the quarter under review stood at Rs 1,134 crore, reflecting a 24 per cent year-on-year growth over revenues of Rs 913 crore in the corresponding previous quarter. The overall consolidated revenue for the quarter ended December 31, 2008, stood at Rs 1,239 crore (Rs 1,226 crore).

“The consolidated net loss has increased on account of the significant expansion being undertaken in the life insurance business,” Mr Analjit Singh, Chairman, Max India, told newspersons here after a meeting of the board of directors.

For the nine months period ended December 31, 2008, Max India reported a consolidated net loss of Rs 350 crore on an overall consolidated revenue of Rs 3,484 crore. The company had recorded a consolidated net loss of Rs 55 crore on an overall income of Rs 2,772 crore.

Meanwhile, the board discussed capital raising plans to fund business growth. The company is looking to raise Rs 1,000 crore post-summer 2009. “We are fully funded up to June. For the period after June, we are looking at raising Rs 1,000 crore. Various options including rights, preferential allotment are before us. No decision has been taken,” a senior Max India official said.

Most of the capital raised — about Rs 750 crore — is likely to go towards the life insurance business, which accounts for 80 per cent of revenues of Max India. It was also pointed that there was a possibility of hike in FDI cap on insurance from the existing 26 per cent to 49 per cent. If that were to happen, New York Life has the option to raise its stake to 49 per cent in Max New York Life.

More Stories on : Financial Performance | Insurance

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