HDFC Life Insurance company on Tuesday reported a 12.44 per cent year-on-year rise in its net profit at Rs 357.52 crore in the quarter ended 31 March, 2022. The company had reported a net profit of Rs 317.94 crore in the year-ago period.
Renewal premium grew nearly 16 per cent at Rs 7,341.17 crore in the March 2022 quarter against Rs 6,350.40 crore in the same quarter last year. Single premium rose 8.2 per cent to Rs 4,505.22 crore from Rs 4,170.58 crore on-year.
The company also added that it witnessed a sustained performance with 22 per cent growth in value of new business (VNB) -- VNB tells you the value of an insurer on the basis of the new business it wrote in the last year -- and its NBM stood at 27.4 per cent.
VNB margin was up 240 basis points at 29.2 per cent in the quarter under review.
The company's total annual premium equivalent (APE) was up by 5.8 per cent YoY at Rs 3,049 crore. APE is is specifically used when sales contain both single premium and regular premium business. Single premium insurance policies require a single lump-sum payment from the customer or policyholder.
The company also said its board has recommended final dividend of Rs 1.70 for the financial year 2021-22, subject to approval of the Members at the ensuing Annual General Meeting.
Commenting on the FY22 performance, Vibha Padalkar, MD & CEO said “We clocked a growth of 16% in individual weighted received premium (WRP) in FY22 with a market share of 14.8% and 9.3% in the private and overall sector, respectively. We continue to deliver consistent all-round performance and be ranked amongst the top three life insurers in the industry."
"Despite very trying times during the 2 year pandemic, our 2 year CAGR of 17% was almost 2 times industry growth of 9%. Overall protection grew by 24% in terms of APE and 47% in terms of new business premium. This was largely led by a 55% growth in credit life new business premium, on the back of higher disbursements. On the retirement side, our annuity business recorded 24% growth vis-à-vis industry growth of 3%. Annuities now contribute over a fifth of our new business premiums, with us almost doubling our business in the last 3 years," Padalkar added.
Shares of HDFC Life on Tuesday closed 1.68 per cent higher at Rs 549.30 apiece on BSE.
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