HDFC Life Insurance Company gained 1.37% to Rs 625.60 after consolidated net profit rose 5.83% to Rs 450.54 crore on 11.20% decline in net premium income to Rs 5,733.73 crore in Q1 June 2020 over Q1 June 2019.
Profit before tax (PBT) gained 2.9% to Rs 450.65 crore in Q1 June 2020 as against Rs 437.97 crore in Q1 June 2019. The result was announced during trading hours today, 21 July 2020.
Total premium fell 10% to Rs 5,863 crore in Q1 FY21 over Rs 6,536 crore in Q1 FY20. Individual Annualized Premium Equivalent (APE) dropped 22% to Rs 1,072 crore in Q1 FY21 over Rs 1,378 crore in Q1 FY20. Total APE tumbled 30% to Rs 1,198 crore in Q1 FY21 over Rs 1,710 crore in Q1 FY20. New Business Margins stood at 24.3% during the quarter from 29.8% in the corresponding period of previous year.
Asset Under Management (AUM) jumped 8% to Rs 1,39,975 crore in Q1 FY21 over Rs 1,29,581 crore in Q1 FY20. Net worth rose 22% to Rs 7,448 crore in Q1 FY21 over Rs 6,084 crore in Q1 FY20.
Indian embedded value grew 17% to Rs 22,580 crore in Q1 FY21 over Rs 19,230 crore in Q1 FY20. Value of new business skid 43% to Rs 291 crore in Q1 FY21 over Rs 509 crore in Q1 FY20. The solvency ratio stood at 190% in Q1 FY21 over 193% in Q1 FY20.
Commenting on the current situation, Vibha Padalkar, MD & CEO said As the economy is coming to terms with the effects of the pandemic, we are increasingly witnessing encouraging on-ground trends. Business has started to pick up on a month-on-month basis and we are seeing higher traction, especially in the individual protection business. As the situation begins to normalise, we expect life insurance to emerge as an important avenue for both protection as well as long term savings, and consequently help attract a higher quantum of inflows from Indian households."
Commenting on the Q1FY21 performance, Vibha Padalkar, MD & CEO said "We continue to exhibit resilient performanceevenin the current scenario. Ourmarket share in terms ofIndividual WRP has increased by 100 basis pointsfrom 17.5% to 18.5%. Our calibrated approach of maintaining a balanced product mix has again enabled us to manoeuvre through a turbulent environment and adapt faster than the overall market.We remain well positioned to provide a sustainable value proposition to our customers,partners and shareholders in these challenging times."
With regards to COVID-19 outbreak, the company's business has started to pick up on a month‐on‐month (M-o-M) basis and is witnessing a higher traction, especially in the individual protection business. As the situation begins to normalise, the insurance firm expects life insurance to emerge as an important avenue for both protection as well as long term savings, and consequently help attract a higher quantum of inflows from Indian households.
The individual weighted received premium (WRP) market share increased by 100 basis points to 18.5% in Q1 FY21 from 17.5% in Q1 FY20. It fell 19% during Q1 FY21 on a high base of 63% growth same quarter last year and delivered better than the private industry which de‐grew by 23% on a base of 24% growth same quarter last year. In June 2020, the company's de‐growth stood at 3% on a base of 87% growth in the same month last year, thereby showing improving business momentum. The strength of the company's digital assets enabled it to minimize the impact of the pandemic on the business operations.
HDFC Life Insurance Company provides various individual and group insurance solutions across India.
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