HDFC Life Insurance Company has clocked a 7.6 per cent growth in profit after tax at Rs 308.7 crore for the second quarter ended September 30, 2019, as compared to Rs 287 crore in the same quarter last yeat.
The private life insurer had posted profit before tax of Rs 326.77 crore in Q2FY20 versus Rs 296.32 crore in Q2FY19, HDFC Life Insurance said in a filing to the Bombay Stock Exchange.
The life insurer, a joint venture between HDFC and Standard Life Aberdeen, earned a total premium of Rs 7,453.7 crore in September quarter, compared to Rs 6,777.55 crore in the last year, registering a growth of 10 per cent.
The company's total income increased to Rs 8,658.37 crore during the quarter under review, from Rs 7,900.39 crore a year ago.
For the half year ended September 30, 2019, HDFC Life Insurance reported a 10 per cent rise in net profit to Rs 733 crore as against Rs 667 crore during the same period a year-ago. The total premium rose to Rs 14,091 crore in H1FY20 from Rs 11,898 crore in H1FY19. The premium of new business of the company rose by 26 per cent to Rs 7,914 crore versus Rs 6,287 crore in H1FY19.
Assets under Management (AUM) grew by 16 per cent to Rs 1.31 lakh crore as compared to Rs 1.13 crore during half year ended September 30, 2018.
The value of new business (VNB) stood at Rs 957crore for H1FY20, up by 57 per cent over the previous year's period. VNB is used to measure the profitability of the new business written in a period.
Commenting on the financial performance, HDFC Life Insurance Company MD and CEO Vibha Padalkar said, "We have delivered strong performance across all key metrics and have continued to sustain our profitability. Despite a challenging macro-environment, we have grown by 35 per cent on Individual WRP, compared to industry growth of 11 per cent. This has enabled us to increase our market share by 220 basis points to 15.2 per cent."
"We remain committed to tap the immense protection and retirals opportunity in India. We expect our continued product innovation and advancements in the use of technology to sustain our performance across business cycles. These factors put us in a good position to harness the long term growth potential of the life insurance industry and provide the best value proposition to our customers, partners and shareholders," Padalkar added.
Following Q2 earnings, shares of HDFC Life Insurance Company were trading 1.15 per cent lower at Rs 604.50 apiece on the Bombay Stock Exchange.