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HDFC Life Insurance Company posted a net profit of Rs 725 crore for the financial year 2013-14. In 2012-13 the net profit was Rs 451 crore. The company now has been profitable for three years, said Vibha Padalkar, ED and CFO, HDFC Life.
The first year premium saw a decline of 24% to Rs 2,356 crore because the company took a conscious call to strengthen the quality of business.
"We turned away a lot of business in cases where we thought that people already had maximum coverage. We felt there is no point in growing only the topline'' Padalkar said.
Total premium growth by 7% to Rs 12,063 crore from Rs 11,323 crore last year, due to healthy growth in renewal premium and group business. Renewal premium increased by 17% to Rs 8,024 crore from Rs 6,887 crore.
Assets under management grew by 25% to Rs 50,258 crore from Rs 40,108 crore last year.
The company has decided to reduce its dependence on bancassurance anticipating changes in regulation. The share of channels other than bancassurance increased sightly from 28% to 30% in the distribution mix.
The product portfolio continued to be balanced with Ulips contributing 49% and traditional business contributing 51% of the Annual Premium Equivalent (APE) in the individual business. Within the traditional segment, the share of non-participating business increased to 15% of APE, against 3% last year.
"We will focus on non-par policies because they are more profitable for the company and they are core to insurance,'' Padalkar said.
This year, HDFC Life will focus on improving persistency and profit growth. Once the new government is in place and if equity markets pick up, the company will look to list itself, Padalkar.
