HDFC Life Q4 PAT rises 2.38% YoY to Rs 319 cr

HDFC Life Insurance Company reported 2.38% rise in consolidated net profit to Rs 319.06 crore in Q4 FY21 from Rs 311.65 crore in Q4 FY20.

Apr 26, 2021 04:04 IST capital market

Net premium income increased by 22.85% to Rs 12,869.55 crore in Q4 FY21 over Q4 FY20.

The companys net income from investments stood at Rs 6,015.42 crore in Q4 March 2021 compared with loss of Rs 10,229.92 crore in Q4 March 2020.

Profit before tax in Q4 FY21 stood at Rs 310.21 crore, up by 9.07% from Rs 284.41 crore in Q4 FY20.

HDFC Lifes consolidated net profit rose 4.89% to Rs 1,360.87 crore on 18.31% increase in net premium income to Rs 38,148.81 crore in the year ended 31 March 2021 over the year ended 31 March 2020.

The company recorded robust growth of 17% in terms of Individual Weighted Received Premium (WRP) during FY21, on a base of 19% growth in FY20. In comparison, the private industry grew by 8% on a base of 5% growth in FY20.

HDFC Life sold about 9.8 lakh new individual policies registering a YoY growth of 10%.

The Value of New Business (VNB) increased by 14% to Rs. 2,185 crore in FY21 over FY20, on the back of consistent growth, balanced product mix and cost efficiencies, thereby translating to New Business Margin of 26.1% in FY21 as compared 25.9% in FY20.

The companys 13th and 25th persistency, stood at 90% and 81% respectively, up from 88% and 76% in the previous year.

The companys operating expense ratio fell to 12% in FY21 from 13.1% in FY20.

The companys net worth increased by 21% to Rs 8,430 crore as on 31 March 2021 from Rs 6,992 crore as on 31 March 2020. The solvency ratio as on 31 March 2021 was 201% as against 184% as on 31 March 2020.

Assets under Management (AUM) has grown by 37% to Rs 1,73,839 crore in FY21 from Rs 1,27,226 crore in FY20.

Commenting on the companys performance and current situation, Vibha Padalkar, MD & CEO said, Over the course of the year, we have settled over 2.9 lakh death claims resulting in payouts in excess of Rs 3,000 crore.

Based on our actual experience in FY21 and after factoring in aspects such as latest mortality trends across business and customer segments and geographic spread of Covid 2.0, we have provided for a Covid reserve of Rs. 165 cr. for FY22. We will continue to review the adequacy of this reserve through the course of FY22.

Despite logistical challenges through the year, we have insured close to 40 million lives in FY21. Our market share in terms of Individual WRP has increased by 130 basis points from 14.2% in FY20 to 15.5% in FY21. We witnessed an upswing in the Savings business on a sequential basis, as more and more customers continued to evaluate investing in bundled solutions to secure both their financial needs as well as protect their loved ones. Given the resurgence of Covid and the looming uncertainty around economic and market momentum, we will continue to maintain a cautiously optimistic stance for FY22 and evaluate our approach dynamically.?

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 HDFC Life scrip rose 2.52% to end at Rs 704.75 on Monday.

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