HDFC Standard Life's portfolio had a product mix with Unit Linked Insurance Plan (Ulips) contributing 57% and conventional products forming 43% of the individual APE.
HDFC Standard Life Insurance Company on Wednesday reported an increase in net profit to Rs 1,110 crore for FY18, recording a growth of 24% over Rs 890 crore posted in the previous fiscal. The embedded value of the company stood at Rs 15,220 crore, up by 22% year-on-year. Amitabh Chaudhry, MD & CEO, HDFC Life said “The Company had a robust year with strong growth and it continued to deliver consistent performance across all metrics. The balanced product mix, diversified distribution network and customer-centric approach has helped deliver profitable growth, thereby adding to shareholder value.
Total Annualised Premium Equivalent (APE) of HDFC Life stood at Rs 5,530 crore in the last fiscal as against Rs 4,190 crore in the previous year, indicating a growth of 32%. APE is the sum of annualised first year regular premiums and 10% weighted single premiums and single premium top-ups. New business premium (NBP) for FY18 stood at Rs 11,350 crore against Rs 8,620 crore in FY17. Total premium for the fiscal was Rs 23,560 crore compared to Rs 19,440 crore in previous year, a surge of 21%.
HDFC Standard Life’s portfolio had a product mix with Unit Linked Insurance Plan (Ulips) contributing 57% and conventional products forming 43% of the individual APE. The protection business, term plans, contributed 26% of total new business premium—25% of individual policies sold in the last fiscal were term plans. The persistency ratio for the 13th month stood at 87% in FY18, while for the 61st month the persistency was at 51%.
In FY17, persistency for 13th month was at 84% and for 61st month at 59%. “61st persistency has come down, but it reflects the cohort which has been there with us for five years. As we keep recording 13th month higher persistency in our business, our 61st month persistency will also move in line,” added Chaudhry. The company also added that HDFC Pension Management Company has become the largest private-owned pension management company in India, with assets under management (AUM) of `2,600 crore as on March 31, 2018.