HDFC Life Insurance Company reported 6.1% rise in consolidated net profit to Rs 327.83 crore on 89.6% increase in total income to Rs 16,426.03 crore in Q2 FY21 over Q2 FY20.
Net premium income during the second quarter rose by 34.9% to Rs 10056.71 crore as against Rs 7456.87 crore in the same period last year.
Profit before tax stood at Rs 327.95 crore in Q2 September 2020, up by 0.3% from Rs 327.06 crore recorded in Q2 September 2019.
The company made a tax provision of Rs 0.12 crore in the September quarter. It had made a tax provision of Rs 18.08 crore in the corresponding period last year.
Commenting on the H1FY21 performance, Vibha Padalkar, MD & CEO said "Our market share in terms of Individual WRP has increased by 235 basis points from 15.2% to 17.5%. Our focus remains on our long term strategy of building a sustainable and profitable business and adding value to all key stakeholders. On the back of the improved economic momentum, we are optimistic about being able to sustain our performance across key metrics for the year."
Padalkar further added: "While we remain sensitive about the health impact and loss of lives due to the pandemic and continue to focus on employee, customer and partner safety norms, opening up of the economy has led to a pickup in activity levels on the ground. This has also resulted in a marginal uplift in household income and spends. Insurance as a category has emerged stronger as a vehicle to protect one's family and realise their long term financial goals. Customers are more active in decision making resulting in traction in the individual business."
HDFC Life's total premium rose 14% to Rs 16,045 crore in H1 FY21 from Rs 14,091 crore in H1 FY20.
While the company's Individual Annualized Premium Equivalent (APE) declined by 1% to Rs 2,834 crore, total APE was down by 4% to Rs 3,334 crore in H1 FY21 over H1 FY20.
New business margins for the six months ended on 30 September 2020 stood at 25.1% as against 27.5% reported in the corresponding period last year.
Asset Under Management (AUM) jumped 15% to Rs 1,50,622 crore in H1 FY21 from Rs 1,31,012 crore in H1 FY20. Net worth increased by 22% to Rs 7,787 crore in H1 FY21 over H1 FY20.
HDFC Life Insurance Company is a joint venture between HDFC, an Indian housing finance institution and Standard Life Aberdeen, a global investment company. The company is long-term life insurance solutions provider, offering a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity and health. As on 30 September 2020, the company had 36 individual and 13 group products in its portfolio, along with 7 optional rider benefits, catering to a diverse range of customer needs.
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