HDFC Life's July-Sept quarter profit declines 16% to Rs 274 cr
HDFC Life has reported a 26 per cent decline in its net profit on a year-on-year basis in the April-September period on higher claims reserving warranted by the 2nd Covid wave.
- Oct 22, 2021,
- Updated Oct 22, 2021 3:43 PM IST
HDFC Life Insurance Company Ltd (HDFC Life), a joint venture of HDFC Ltd and Standard Life Aberdeen, has reported a net profit of Rs 274.16 crore for July-September quarter vs Rs 326 crore during the same period last year.
The company's profit during the previous quarter stood at Rs 302 crore. The net profit in Q2 declined 13 per cent on a QoQ basis, while 16 per cent on a YoY basis.
The company's net premium for the said quarter rose to Rs 11,443 crore vs Rs 10,045 crore during the same quarter last year. In the fiscal year so far, HDFC Life has reported a 26 per cent decline in its net profit on a year-on-year basis in the April-September period on higher claims reserving warranted by the second Covid wave.
The company saw 41 per cent growth in protection APE (annual premium equivalent), while 47 per cent growth in annuity business. Its new business margin also expanded to 26.4 per cent, while operating RoEV (Return on Embedded Value) at 18.4 per cent (pre-EMR). HDFC Life also saw 18 per cent growth in its renewal premium, and the AUM (assets under management) stood at Rs 1.9 lakh crore, implying 27 per cent YoY growth, as of September 30.
HDFC Life MD and CEO Vibha Padalkar said consumer sentiment remains buoyant and the company is "optimistic about a sustained increase in business" in the coming few months.
Also read: Three HDFC Bank employees among 12 arrested for trying to withdraw money from NRI account
Padalkar said the company's business performance remains strong, with 22 per cent growth and a private market share of 16.2 per cent in terms of Individual WRP in H1 FY22.
"New business margin (NBM) expanded by 130 bps with NBM at 26.4% for H1 FY22, higher than 25.1% in H1 FY21. Value of new business was Rs 1,086 crore, recording a robust growth of 30% over last year," said Padalkar. The product mix was balanced with non-par savings at 32 per cent, participating products at 30 per cent and ULIPs at 26 per cent on an APE basis.
Its subsidiary HDFC Pension also crossed the milestone of Rs 20,000 crore AUM and registered 97 per cent growth YoY. HDFC Life has said it has been ranked "number 1 in terms of overall new business premium" in the private sector, with a market share of 22.3 per cent.
The company continues to maintain a balanced product mix, with a share of participating savings, non-participating savings, ULIPs, protection and annuity accounted for 30 per cent, 32 per cent, 26 per cent, 7 per cent and 5 per cent of individual APE, respectively.
The HDFC Life Insurance stock is trading at Rs 694.35, 0.55 or 0.10 per cent down, as compared to the previous day close of Rs 558.15 on the NSE.
Also read: HDFC Bank, Mastercard, USAID offer $100 mn credit facility to MSMEs and women entrepreneurs
HDFC Life Insurance Company Ltd (HDFC Life), a joint venture of HDFC Ltd and Standard Life Aberdeen, has reported a net profit of Rs 274.16 crore for July-September quarter vs Rs 326 crore during the same period last year.
The company's profit during the previous quarter stood at Rs 302 crore. The net profit in Q2 declined 13 per cent on a QoQ basis, while 16 per cent on a YoY basis.
The company's net premium for the said quarter rose to Rs 11,443 crore vs Rs 10,045 crore during the same quarter last year. In the fiscal year so far, HDFC Life has reported a 26 per cent decline in its net profit on a year-on-year basis in the April-September period on higher claims reserving warranted by the second Covid wave.
The company saw 41 per cent growth in protection APE (annual premium equivalent), while 47 per cent growth in annuity business. Its new business margin also expanded to 26.4 per cent, while operating RoEV (Return on Embedded Value) at 18.4 per cent (pre-EMR). HDFC Life also saw 18 per cent growth in its renewal premium, and the AUM (assets under management) stood at Rs 1.9 lakh crore, implying 27 per cent YoY growth, as of September 30.
HDFC Life MD and CEO Vibha Padalkar said consumer sentiment remains buoyant and the company is "optimistic about a sustained increase in business" in the coming few months.
Also read: Three HDFC Bank employees among 12 arrested for trying to withdraw money from NRI account
Padalkar said the company's business performance remains strong, with 22 per cent growth and a private market share of 16.2 per cent in terms of Individual WRP in H1 FY22.
"New business margin (NBM) expanded by 130 bps with NBM at 26.4% for H1 FY22, higher than 25.1% in H1 FY21. Value of new business was Rs 1,086 crore, recording a robust growth of 30% over last year," said Padalkar. The product mix was balanced with non-par savings at 32 per cent, participating products at 30 per cent and ULIPs at 26 per cent on an APE basis.
Its subsidiary HDFC Pension also crossed the milestone of Rs 20,000 crore AUM and registered 97 per cent growth YoY. HDFC Life has said it has been ranked "number 1 in terms of overall new business premium" in the private sector, with a market share of 22.3 per cent.
The company continues to maintain a balanced product mix, with a share of participating savings, non-participating savings, ULIPs, protection and annuity accounted for 30 per cent, 32 per cent, 26 per cent, 7 per cent and 5 per cent of individual APE, respectively.
The HDFC Life Insurance stock is trading at Rs 694.35, 0.55 or 0.10 per cent down, as compared to the previous day close of Rs 558.15 on the NSE.
Also read: HDFC Bank, Mastercard, USAID offer $100 mn credit facility to MSMEs and women entrepreneurs