Money & Banking

HDFC Life Insurance Q4 net profit up 2%

Our Bureau Mumbai | Updated on April 26, 2021

Vibha Padalkar, MD and CEO, HDFC Life Insurance

Insurer’s net premium income grew by a robust 23 per cent

Private sector HDFC Life Insurance reported a 2 per cent increase in standalone net profit in the quarter ended March 31, 2021, at ₹317.94 crore.

Its net profit was ₹311.71 crore in the same period in 2019-20. For 2020-21, its net profit increased by five per cent to ₹1,360.1 crore against ₹1,295.27 crore in 2019-20.

Premium income

The insurer’s net premium income grew by a robust 23 per cent to ₹12,868.01 crore for the fourth quarter of 2020-21 versus ₹10,464 crore a year ago.

“HDFC Life sold about 9.8 lakh new individual policies, registering a year-on-year growth of 10 per cent. The value of new business increased by 14 per cent to ₹2,185 crore on the back of consistent growth, balanced product mix and cost efficiencies, thereby translating to new business margin of 26.1 per cent,” it said in a statement on Monday.

Its solvency ratio was at 201 per cent as on March 31, 2021, versus 184 per cent a year ago. The 13th month persistency ratio was 90 per cent compared to 88 per cent a year ago.

Vibha Padalkar, Managing Director and CEO, HDFC Life, said the insurer has provided for a Covid reserve of ₹165 crore for 2021-22. “We will continue to review the adequacy of this reserve through the course of the fiscal year,” she said, adding that over the course of the year it settled over 2.9 lakh death claims, resulting in payouts in excess of ₹3,000 crore.

The board also recommended a final dividend of ₹2.02 per equity share of face value ₹10 each for 2020-21, subject to approval of members at the Annual General Meeting.

Based on the recommendation of the Nomination and Remuneration Committee, the board also approved the re-appointment of Vibha Padalkar as MD and CEO of the company for five years with effect from September 12, subject to approval of the members at the AGM and IRDAI.

Published on April 26, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor