HDFC Life Insurance consolidated Q2 net profit at Rs275.91cr

Ms. Vibha Padalkar, MD & CEO said “With the vaccination program going well, approximately 70% of the adult population has received at least one dose, and we are hopeful that the intensity of any subsequent covid wave will be muted."

Oct 22, 2021 04:10 IST India Infoline News Service

HDFC Life Insurance posted its consolidated net profit dropped around 16% to Rs275.91cr during the quarter ended September 30, 2021. The insurance major had reported a consolidated net profit of Rs327.83cr in the year-ago period. Total income was up to Rs20,478.46cr during this period, from Rs16,426.03cr a year ago.

Commenting on the current situation, Ms. Vibha Padalkar, MD & CEO said “With the vaccination program going well, approximately 70% of the adult population has received at least one dose, and we are hopeful that the intensity of any subsequent covid wave will be muted. Consumer sentiment remains buoyant and we are optimistic about sustained increase in business in the coming few months.”

Commenting on the H1FY22 performance, Ms. Vibha Padalkar, MD & CEO said “Our business performance remains strong with 22% growth and private market share of 16.2% 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. Our Profit after Tax stands at Rs. 577cr for H1 (26% lower than H1 FY21), on the back of higher claims reserving warranted by the second wave of the pandemic.”

The product mix was balanced with non-par savings at 32%, participating products at 30% and ULIPs at 26% on APE basis. Annuity business registered healthy growth of 47% vis-à-vis H1 FY21, with annuities contributing about 24% of our new business premium. We view protection business in a holistic way. Protection APE including group recorded yoy increase of 41% for H1 and comprises 21% of our new business premium. We have a wide range of products in our portfolio, both on the retail and group side, to address varying customer needs through multiple distribution channels.

Further, on claims, we settled around 2,00,000 claims in H1 FY22. Gross and net claims amounted to Rs 3,640 crore and Rs 2,466 crore respectively. The overall experience has been in line with our projections and we carry an Excess Mortality Reserve (EMR) of Rs 204 crore into H2 FY22.

"Our subsidiary, HDFC Pension, crossed the milestone of 20,000 crore AUM and registered 97% growth yoy. The pace of growth has accelerated significantly - it took us 7 years to achieve the first 10,000 crore mark and only 14 months for the next 10,000 crores. HDFC Pension continues to be the #1 private Pension Fund Manager (PFM) in terms of NPS AUM with a market share of 36% as on 30th Sep, 2021. We believe that the current environment is conducive for a robust growth of the life insurance sector as there is an increased awareness about life insurance as a financial protection tool,” she added.

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