HDFC Life Q3 PAT rises 5% to Rs 263 cr

HDFC Life Insurance Companys consolidated net profit rose by 4.9% to Rs 263.44 crore on a 81.4% jump in total income to Rs 21,128.63 crore in Q3 FY21 over Q3 FY20.

Jan 22, 2021 05:01 IST capital market

While the companys net premium income improved by 20.8% to Rs 9,488.84 crore, net income from investments increased by 3.1 times to Rs 11,594.24 crore in Q3 December 2020 over Q3 December 2019.

Profit before tax in Q3 FY21 stood at Rs 265.46 crore, up by 0.4% from Rs 264.46 crore in Q3 FY20. Tax provisions declined by 84.9% year-on-year (YoY) to Rs 2.02 crore.

Value of New Business remained flat at Rs 1,408 crore in the nine months ended in December 2020 (9M FY21) from Rs 1,407 crore in the nine months ended in December 2019 (9M FY20). New business margin stood at 25.6% in 9M FY21 as compared to 26.6% in 9M FY20.

The companys operating expense ratio fell to 12.1% in 9M FY21 from 13.7% in 9M FY20.

The companys net worth increased by 21% to Rs 8,089 crore as on 31 December 2020 from Rs 6,670 crore as on 31 December 2019. The solvency ratio as on 31 December 2020 was 202% as against 195% as on 31 December 2019.

Assets under Management (AuM) has grown by 21% to Rs 1,65,623 crore as on 31 December 2020 from Rs 1,36,451 crore as on 31 December 2019.

Commenting on the current situation, Vibha Padalkar, MD & CEO said: We are witnessing a lift in customer confidence, which is also reflected in the new business premium trends for both the individual as well as the group credit protect business. We continue to see a pickup in the savings business, accompanied by an increase in both the average ticket size as well as number of policies.

Further, commenting on the 9MFY21 performance, Ms. Padalkar said ?Our market share in terms of Individual WRP has increased by 214 basis points from 14.3% to 16.4%. We continue to witness sequential improvement in our new business margins, which stood at 25.6% for 9MFY21. Given that the vaccination drive has been initiated and the economic momentum on the ground seems sustained, we will strive for continued new business growth and an upward trajectory on New Business Margins whilst adhering to a conservative risk management approach.?

HDFC Life Insurance Company is a life insurance entity promoted by HDFC, Indias leading housing finance institution and Standard Life Aberdeen, a global investment company.

The scrip fell 1.86% to end at Rs 687.65 on Friday.

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