new delhi buoyed by strong financial performance in the last fiscal max life insurance has announced its embedded value at rs 5232 crore significantly higher than the previous year implying that companys valuation stands at around rs 16000 crore embedded value is the value of inforce business plus the value of the free capital going by ongoing negotiation in various insurance firms they are valued at a little over three times the embedded value said rahul khosla managing director at max india the holding company of max life he said max lifes valuation currently stands at rs 1600017000 crore the flagship company of max india had embedded value of rs 4400 crore in the previous year when its japanese partner mitsui had acquired 26 stake in the company for rs 2731 crore valuing the company at rs 10506 crore the companys embedded value was about rs 3200 crore since then the company changed the methodology for calculating the embedded value to market consistent methodology the market consistent method captures the premium income of inforce businesses with different maturity period in a better way than the traditional method said khosla this methodology explicitly allows for insurance and economic risks rather than using an overall allowance of risk through a risk discount rate used in the tradition approach he said under the traditional method the embedded value for 201314 was rs 3900 crore against rs 4400 crore under the market consistent method max india on wednesday also announced a 27 increase in its consolidated revenues for 201415 at rs 14877 crore and a whopping 75 jump in its net profit at rs 365 crore khosla said the company is not looking at raising capital either at the operating level max life insurance or at the holding level the market capitalisation of max india which owns 72 stake in the insurance joint venture currently stands at rs 12801 crore besides the insurance venture max india also owns 4595 stake in max healthcare hospital chain and about 46 stake in max bupa the health insurance joint venture with the ukbased bupa in addition max india has specialty film production facility under a wholly owned subsidiary msfl that manufacture a wide range of sophisticated packaging bopp films max india has embarked on a threeway split of its businesses in which its ownership in max life insurance will be transferred to max financial services that will be listed on indian bourses as pure holding company for the max life insurance