“Business sentiment remains positive and the high-frequency indicators suggest economic revival is on track. We are optimistic about the sustenance of business momentum in the months to come,” said Vibha Padalkar, MD & CEO, HDFC Life Insurance
Mumbai:
HDFC Life on Friday reported a 3 per cent increase in net profit to Rs 273.65 crore for the third quarter ended December.
The private sector insurer’s profit stood at Rs 264.99 crore in the same quarter of the previous fiscal, HDFC Life said in a regulatory filing.
In the nine-month ended December, the company said its profit stood at Rs 850 crore, 18 per cent lower than last year, primarily due to elevated claims during the pandemic and reserving for excess mortality.
“Business sentiment remains positive and the high-frequency indicators suggest economic revival is on track. We are optimistic about the sustenance of business momentum in the months to come,” said Vibha Padalkar, MD & CEO, HDFC Life Insurance.
However, total income declined to Rs 14,222.22 crore in the latest December quarter from Rs 21,126.80 crore in October-December 2020.
On the claims front, the company said it honoured close to 3 lakh claims during 9M FY22. It witnessed 19% growth in renewal premiums and a further improvement in 13th and 61st-month persistency, which now stands at 92% and 57% respectively vs 89%. Its solvency as of December 31, 2021, was at 190 per cent.
The company’s solvency ratio too declined to 190 per cent from 202 per cent as on December 31, 2020. The regulatory requirement is 150 per cent.
“On January 1, 2022, the company has issued 8,70,22,222 equity shares at an agreed issue price of Rs 685 per share on a preferential basis and paid balance Rs 725.98 crore in cash to Exide Industries Limited in lieu of 100 per cent equity shares of Exide Life thereby completing the acquisition of Exide Life,” it said.
With effect from January 1, 2022, Exide Life has become a wholly-owned subsidiary of the company.
As regards the second phase of the transaction, that is the amalgamation of Exide Life with the company, the management is in the process of initiating the filing of the scheme of amalgamation with various authorities for necessary approvals, it added.