HDFC Life Insurance Company reported a 16% fall in standalone net profit to Rs 274.16 crore in Q2 FY22 as compared to Rs 326.09 crore posted in Q2 FY21.
Total income rose 24% to Rs 20,476.89 crore in Q2 FY22 over Q2 FY21. Profit before tax in Q2 FY22 stood at Rs 275.95 crore, down 15.4% over Q2 FY21.Net premium income during increased by nearly 14% year on year to Rs 11,443.96 crore. Income from investments (net) jumped by 40.4% to Rs 8873.38 crore in Q2 FY22 over Q2 FY21. The life insurer's solvency ratio stood at 190% for Q2 FY22 as compared to 203% in Q1 FY22 and Q2 FY21. The ratio is above the prescribed regulatory limit of 150%.
The life insurance company reported a 26% fall in net profit to Rs 577 crore in six month ended September 2021 (H1 FY22) over six month ended September 2020 (H1 FY21). Net premium income rose 20% to Rs 18,985.58 crore in H1 FY22 over H1 FY21.
Value of New Business stood at Rs 1,086 crore in H1 FY22, an increase of 30% over last year. New business margin expanded by 130 bps to 26.4% for H1 FY22, versus 25.1% in H1 FY21. The sustained increase in VNB has been driven by growth across channels and a balanced product portfolio.
Total APE grew 23% year on year to Rs 4,112 crore while individual APE rose 21% year on year to Rs 3,427 crore in H1 FY22. Annualized Premium Equivalent (APE) is the sum of annualized first year regular premiums and 10% weighted single premiums and single premium top-ups.
Assets under Management (AuM) increased by 27% to Rs 1,91,212 crore in H1 FY22 compared H1 FY21. The company's net worth rose by 12% to Rs 8,690 crore in H1 FY22 from Rs 7,790 crore in H1 FY21.
Commenting on the H1FY22 performance, Vibha Padalkar, MD & CEO said, Our business performance remains strong with 22% growth and private market share of 16.2% in terms of Individual WRP in H1 FY22. Our Profit after Tax stands at Rs 577 crore for H1 (26% lower than H1 FY21), on the back of higher claims reserving warranted by the second wave of the pandemic. The product mix was balanced with non-par savings at 32%, participating products at 30% and ULIPs at 26% on APE basis. Annuity business registered healthy growth of 47% vis-vis H1 FY21, with annuities contributing about 24% of our new business premium. We view protection business in a holistic way. Protection APE including group recorded year on year increase of 41% for H1 and comprises 21% of our new business premium.
She further said, We settled around 2,00,000 claims in H1 FY22. Gross and net claims amounted to Rs 3,640 crore and Rs 2,466 crore respectively. The overall experience has been in line with our projections and we carry an Excess Mortality Reserve (EMR) of Rs 204 crore into H2 FY22. We believe that the current environment is conducive for a robust growth of the life insurance sector as there is an increased awareness about life insurance as a financial protection tool.
Shares of HDFC Life Insurance Company were trading 0.12% lower at Rs 694.05 on BSE.
HDFC Life Insurance Company is a life insurance entity promoted by HDFC, India's leading housing finance institution and Standard Life Aberdeen, a global investment company.
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