HDFC Life net profit rises 5.9% to Rs 265 cr in December quarter

HDFC Life Insurance reported a 5.89 per cent rise in its quarterly net profit to Rs 264.99 crore

HDFC Life Insurance reported a 5.89 per cent rise in its standalone net profit to Rs 264.99 crore in December 2020 quarter.

The private life insurer had posted a net profit of Rs 250.24 crore in the year-ago quarter.

Its net premium income stood at Rs 9,487.01 crore during the third quarter of 2020-21, compared to Rs 7,854.3 crore.

The insurer's first year premium stood at Rs 1,772.24 crore in the third quarter of 2020-21, against Rs 1,542.96 crore in the corresponding quarter of last year. Renewal premium was at Rs 4,576.98 crore, compared to Rs 3,765.63 crore in the year-ago period.

 

Profit after tax in the April-December 2020 period rose 6 per cent to Rs 1,042 crore, from Rs 984 crore last year.

"We are witnessing a lift in customer confidence, which is also reflected in the new business premium trends for both the individual as well as the group credit protect business.

"We continue to see a pickup in the savings business, accompanied by an increase in both the average ticket size as well as number of policies," Its Managing Director and CEO Vibha Padalkar said.

 

The company's market share in terms of individual weighted received premium (WRP) has increased 214 basis points from 14.3 per cent to 16.4 per cent in the first nine months of the current financial year.

The new business margin (NBM) in the first nine months of 2020-21 stood at 25.6 per cent.

In April-December period, its individual annualiaed premium equivalent (APE) rose 6 per cent to Rs 4,661 crore, from Rs 4,394 crore in the year-ago period.

New business premium grew 11 per cent to Rs 13,547 crore in the first nine months of 2020-21, against Rs 12,150 crore in the previous financial year.

Renewal premium rose 22 per cent to Rs 12,126 crore in the period, against Rs 9,942 crore.

The company's solvency ratio was 202 per cent as on December 31, 2020.

The insurer has settled 1,271 individual and 542 group COVID-19-related claims as of December 2020.

The company's scrip on Friday closed at Rs 687.65 apiece on the BSE, down 1.86 per cent.