HDFC Life Insurance Company’s consolidated net profit increased 5.63% year on year to Rs 326.09 crore in the second quarter of the current financial year, riding on growth in the net premium income and income from investments.
In exchange filings, HDFC Life showed that they had received net premium income of Rs 10,045.44 crore in the second quarter compared to Rs 7,453.68 crore in the previous financial year. Net income from investments for the life insurer was at Rs 6,318.81 crore in the quarter under review against Rs 1,135.12 crore in the last fiscal year.
Vibha Padalkar, MD & CEO of HDFC Life, said, “Opening up of the economy has led to pick-up in activity on ground and this has also resulted in household income and spends. Insurance as a category has emerged stronger as a vehicle to protect one’s family and realise their long-term financial goals. Customers are more active in decision making resulting in traction in the individual business.”
Total new business (includes individual and group) for Q2 FY21 stood at Rs 5,872 crore compared to Rs 3,988 crore in the previous financial year. Renewal premium grew 21% to Rs 4,310 crore in the second quarter. “Renewal growth has remained strong with normalisation being witnessed in our premium collection. However, we continue to monitor the collection closely and remain watchful about emerging persistency trends. This quarter, new business margins have seen improvement on a sequential as well as on the year-on-year basis, on the back of our return to growth, favourable products mix and cost being kept under control,” added Padalkar.
The individual Annualized Premium Equivalent (APE) for HDFC Life was at Rs 1,762 crore in the second quarter of FY21 compared to Rs 1,487 crore in the last financial year. The total APE stood at Rs 2,137 crore, witnessing 21% growth in Q2FY21. APE if the sum of annualised first year regular premiums and 10% weighted single premiums and single premium top-ups. HDFC Life also stated that as of September, the company had received 418 Covid-19 related claims on the individual business and 50 claims in its group business. The stock price of HDFC Life on Monday rose 1.64% to Rs 570.65 on the BSE.
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