Notably, HDFC Life's top-line front was robust. The insurer recorded a whopping 23% growth in net premium income to Rs12,868.01cr in Q4FY21 against Rs10,464cr in the corresponding period of the previous year.
For full fiscal FY21, HDFC Life recorded strong 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 on the back of consistent growth, balanced product mix and cost efficiencies, thereby translating to a New Business Margin of 26.1%. HDFC Life’s 13th and 25th persistency, stands at 90% and 81% respectively, up from 88% and 76% in the previous year.
The company's net profit stood at Rs1,360.1cr for the entire FY21, increasing by 5% from Rs1,295.27cr of the previous fiscal.
Vibha Padalkar, MD & CEO said, “We are working closely with all our partners and re-insurers to ensure timely service and claim resolution. Over the course of the year, we have settled over 2.9 lakh death claims resulting in payouts in excess of Rs. 3,000 cr. 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."
Padalkar added, "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 focus on our employees has been recognised and has helped us feature as a “Great Place to Work” amongst India’s Top 30 Best Workplaces in BFSI."
At around 12.20 pm, HDFC Life is trading at Rs683.15 per piece down by Rs21.60 or 3.06% on Sensex.