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HDFC Standard Life Insurance Company reported a 19 per cent increase in Q1 net profit on the back of robust growth in new business premium.
Net profit in the June 2018 quarter was ₹380 crore against ₹320 crore in the year-ago quarter.
While gross premium income was up 37 per cent year-on-year (y-o-y) to ₹5,060 crore, income from investments was down 34 per cent y-o-y to ₹1,880 crore.
On the expenses and outflow front, benefits paid (including net benefits paid, interim bonus and terminal bonuses) increased 12 per cent y-o-y to ₹2,940 crore; change in valuation reserves (net) declined 9 per cent y-o-y to ₹2,540 crore; commission paid was up 25 per cent y-o-y at ₹200 crore, and operating expenses rose 28 per cent y-o-y to ₹730 crore.
New business premium (individual and group) jumped 62 per cent y-o-y to ₹2,680 crore. Renewal premium (individual and group) was up 16 per cent at ₹2,380 crore.
Assets under management rose 16 per cent y-o-y to ₹1,09,630 crore.
Persistency ratio
While the 13-month persistency ratio (the proportion of business renewed from the business underwritten) improved to 87 per cent (85 per cent in the year-ago quarter), the 61-month persistency ratio declined to 50 per cent (57 per cent).
The solvency ratio (available solvency margin to required solvency margin) was a tad lower at 197 per cent against 198 per cent in the year-ago period.
This ratio indicates whether an insurer has sufficient assets to transact business and meet liabilities.
Meanwhile, the life insurer’s board of directors approved the proposal for changing the corporate name of the company from HDFC Standard Life Insurance Company Limited to HDFC Life Insurance Company Limited, subject to approval of the shareholders and the relevant statutory and regulatory authorities.
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