HDFC Life Insurance on Friday reported a 19.25% year-on-year growth in its net profit to Rs 329.02 crore for the second quarter this fiscal on a consolidated basis, aided by an over 14% YoY increase in net premium income. The net profit had stood at Rs 275.90 crore in the year-ago period.
Net premium income rose 14.56% YoY to Rs 13,137.89 crore during the July-September period, compared with Rs 11,468.03 crore in the same period last year, according to a stock exchange filing.
First year premium during the period under review grew 16.61% to Rs 2423.13 crore, against Rs 2,077.96 crore for the year-ago period. Renewal premium during the period increased 37.19% to Rs 6,906.63 crore.
During the first half of this fiscal (H1FY23), value of new business grew 16% to Rs 1,258 crore on a pre-merger basis, from Rs 1,086 crore in the corresponding period last year, HDFC Life
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“On the business front, we continued to maintain a steady growth trajectory, growing by 11% in terms of total APE (annualized premium equivalent) in H1FY23 on a pre-merger basis i.e. excluding Exide Life. We have grown in line with the industry and faster than listed peers this quarter, which also led to market share improvement from 14.6% in Q1 to 15.0% in Q2 on a pre-merger basis,” said Vibha Padalkar, MD & CEO.
New business margin (NBM) for the quarter was 27.6%, up from 26.4% in H1FY22, on a pre-merger basis. “There has been margin expansion for both the existing business i.e. pre-merger and the acquired Exide Life business. We are close to achieving our aspiration of maintaining FY22 margin neutrality for the combined entity, having delivered 26.2% NBM, compared to 26.4% in H1FY22. The value of new business grew 16% on a pre-merger basis and was at Rs 1,258 crore for H1,” Padalkar said.
The company’s board on Friday announced that it has elevated Suresh Badami, currently executive director and chief distribution officer, to the role of deputy managing director.
HDFC Life Insurance’s pre-merger embedded value as on September 30, 2022, stood at Rs 33,015 crore, while the embedded value of the merged entity was at Rs 36,016 crore.