During the quarter under review, the company's new business premium stood at `3,767 crore, up 44% y-o-y, while renewal premium rose 20% y-o-y to `3,889 crore.
Private sector life insurer HDFC Life Insurance on Monday reported a 32.97% year-on-year fall in its standalone net profit to `302.35 crore for the first quarter this fiscal, against `451.09-crore net profit for the same period last fiscal, as it has created `700 crore of excess mortality reserve. During the quarter under review, the company’s new business premium stood at `3,767 crore, up 44% y-o-y, while renewal premium rose 20% y-o-y to Rs 3,889 crore.
Vibha Padalkar, MD & CEO, said, “Against the backdrop of disruption in business on account of localised lockdowns, and surge in cases during the second wave, we recorded 22% growth and market share of 17.8% in private sector in terms of individual WRP (weighted received premium). We clocked 40% growth in terms of value of new business and we achieved a new business margin of 26.2% in Q1.” Padalkar said the insurer’s product mix continued to remain balanced and its annuity business witnessed strong growth of 61% in first quarter.
In comparison to Q1FY21, the company, a joint venture between HDFC Ltd. and Standard Life Aberdeen, clocked higher renewal collections, with 13th month persistency improving from 87% to 90%.
“”In the quarter gone by, we witnessed a steep rise in death claims, with peak claims in wave 2 at around 3-4 times the peak claim volumes in the first wave. We paid over 70,000 claims in Q1. The gross and net claims provided for amounted to Rs 1,598 crore and Rs 956 crore, respectively,” Padalkar said, adding based on its current claims experience, the company set up an additional reserve of Rs 700 crore to service the claims intimations expected to be received.