HDFC Life's Q1 net falls 33% due to higher provisions and claim payout

The company said it has settled around 70,000 claims in Q1FY22

Private sector life insurer HDFC Life has reported a 33 per cent decline in net profit to Rs 302 crore in the June quarter (Q1FY22).

This has been attributed to higher claims owing to the pandemic and more provisioning to mitigate the impact of excess claims. It has set up an additional reserve of Rs 700 crore to service further claims.

The insurer said it has settled close to 70,000 claims in Q1FY22, with the gross and net claim amounting to Rs 1,598 crore and Rs 956 crore, respectively. “In the quarter gone by, we witnessed a steep rise in death claims,