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HDFC Life Insurance slides after muted Q3 profit

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Capital Market
Last Updated : Jan 24 2020 | 10:31 AM IST

HDFC Life Insurance Company fell 1.37% to Rs 607.03 after consolidated net profit rose 2.66% to Rs 251.09 crore on a 13.85% increase in net premium income to Rs 7,854.98 crore in Q3 December 2019 over Q3 December 2019.

Consolidated profit before tax (PBT) rose 3.53% to Rs 264.46 crore in Q3 December 2019 as against Rs 255.43 crore in Q3 December 2018. The result was declared after market hours yesterday, 23 January 2020.

Total APE (Annual Premium Equivalent) grew 31% to Rs 5,296 crore in the nine-month ended December 2019 (9MFY2020) as against Rs 4,050 crore in the nine-month ended December 2018 (9MFY2019).

New Business Premium (Individual+Group) jumped 22% to Rs 12,150 crore in 9MFY2020 over Rs 9,940 crore in 9MFY2019. Renewal Premium (Individual + Group) soared 11% to Rs 9,942 crore in 9MFY2020 compared to Rs 8,920 crore in 9MFY2019. Total premium improved 17% to Rs 22,092 crore in 9MFY2020 from Rs 18,860 crore in 9MFY2019.

The Asset under Management (AUM) rose 16% to Rs 1.36 lakh crore in 9MFY2020 as against Rs 1.17 lakh crore in 9MFY2019. The Indian Embedded Value (EV) surged 20% to Rs 20,841 crore in 9MFY2020 over Rs 17,397 crore in 9MFY2019. Value of new business rose 45% to Rs 1,407 crore in 9MFY2020 over Rs 971 crore in 9MFY2019.

Solvency margin at the insurer was 195% in the period under review, above the regulatory requirement of 150%.

Commenting on the Q3 result, Vibha Padalkar, the managing director and CEO of HDFC Life Insurance Company, has said that, We continue to deliver consistently across all key metrics, whilst maintaining our focus on profitable growth. Product innovation remains a key focus area for us, with our newly launched product Sanchay Par Advantage being received well. Expanding and diversifying our distribution mix continues to be a vital component of our strategy. We have sustained growth momentum across our proprietary channels, coupled with steady performance across our corporate partners. Our market share basis Individual WRP has increased by 160 basis points to 14.3%. These factors have positioned us to harness the long term growth potential of the life insurance industry and provide a sustainable value proposition to our customers, partners and shareholders.

HDFC Life Insurance Company provides various individual and group insurance solutions across India.

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First Published: Jan 24 2020 | 9:24 AM IST

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