HDFC Life Q1 net rises 12% on business premium growth

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Published: July 24, 2019 12:56:08 AM

The value of new business for HDFC Life stood at Rs 509 crore in Q1FY20 compared to Rs 249 crore a year ago

APE is the sum of annualised first-year regular premiums and 10% weighted single premiums and single premium top-ups.

HDFC Life Insurance Company on Tuesday posted a net profit of Rs 425 crore for the first quarter of current financial year, a rise of 12% from the previous year, largely due to the growth in new business premium. The HDFC Life stock reacted positively to the results and ended the day at Rs 508.60, gaining Rs 18.10 or 3.69% on Tuesday on the BSE.

New business premium (which includes individuals and group) for the company stood at Rs 3,926 crore in Q1FY20 compared to Rs 2,678 crore a year ago, a rise of 47%. The value of new business for HDFC Life stood at Rs 509 crore in Q1FY20 compared to Rs 249 crore a year ago. Vibha Padalkar, MD & CEO of HDFC Life, said: “We have recorded a stellar topline growth, with strong traction witnessed across savings, protection and retirement solutions whilst maintaining our focus on profitability. Our diversified distribution mix coupled with product innovation has helped us address niche customer segments and emerging profit pools.”

HDFC Life’s assets under management (AUM) stood at around Rs 1.3 lakh crore with the debt and equity mix of 62:38 as on June 30, 2019 . Almost 96% of debt investments are in G-Secs and AAA bonds as on June 30, 2019. HDFC Life in its press release said, term protection annualised premium equivalent (APE) has increased to Rs 304 crore during Q1FY20, from Rs 187 crore in the corresponding period last year, representing a strong growth of 63%. Annuity APE was at Rs 70 crore in Q1FY20, growing by 69% over Q1FY19. Protection and annuity businesses comprise a substantial 26% and 18% of total new business premium, respectively. APE is the sum of annualised first-year regular premiums and 10% weighted single premiums and single premium top-ups.

HDFC Life’s market share in the private sector stood at 25.1% compared to 22.3% in Q1FY19, based on total new business received premium. Total number of lives insured grew by 26% to 1.3 crore during Q1FY20. Overall, new business sum assured also saw an increase of 46% to Rs 1.8 lakh crore during the same period.

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