Vibha Padalkar, MD & CEO, HDFC Life,
The life insurer’s Indian embedded value(IEV) has risen by to Rs 29,709 crore in the reporting quarter. Its value of new business (VNB) has moved by 25 per cent to 510 crore in the same quarter
Its new business margin for Q1 FY 2023 was 26.8 per cent up from 26.2 per cent in Q1 of the previous year, on the back of profitable product mix and growth in protection business
Plans to set up an IFSC Insurance Office (IIO) at GIFT city, which can cater to the overseas insurance needs of the Indian diaspora
Mumbai:
HDFC Life Insurance, the third largest life insurer in the country, in Q1 FY23, has increased its net profit to Rs 365 crore, up 21 per cent, over Q1 FY22.
The board of directors of HDFC Life approved its results on Tuesday
The total premium of the life insurer has expanded by 23 per cent year-on-year (y-o-y) to Rs 9,396 crore in the reporting quarter.
HDFC Life’s new premium income has gone up by 27 per cent y-o-y to Rs 4,776 crore while, with improving persistency, its renewal premiums of has grown by 19 per cent y-o-y to Rs 4,620 crore in Q1 FY23.
The life insurer’s Indian embedded value(IEV) has risen by to Rs 29,709 crore in the reporting quarter. Its value of new business (VNB) has moved by 25 per cent to 510 crore in the same quarter.
Its new business margin for Q1 FY 2023 was 26.8 per cent up from 26.2 per cent in Q1 of the previous year, on the back of profitable product mix and growth in protection business.
The life insurer has completed raising sub-debt worth Rs 350 crore during Q1 fy23. Post the dividend payout of Rs 1.70 per share, its solvency stands at 178 per cent. In order to further strengthen solvency to fuel growth, the company will continue to evaluate raising equity capital as needed, said the company.
Vibha Padalkar, MD & CEO, HDFC Life, said “We continue to maintain a consistent growth trajectory, growing by 22 per cent in terms of Annualized Premium Equivalent(APE) in Q1 FY23. This has enabled us to maintain our market leadership as a ‘Top 3 life insurer’ across individual and group business.’’
APE is the sum of annualised first year regular premiums and 10 per cent weighted single premiums and single premium top-ups.
The life insurer’s product mix has remained balanced, with non-par savings at 35 per cent , participating products at 30 per cent , ULIPs at 25 per cent , individual protection at 5 per cent and annuity at 6 per cent, based on individual APE,’’ said Padilkar.
“Our protection share based on APE improved from 15.7 per cent last year to 16.9 per cent during Q1 FY23. Our credit protect business has registered strong growth of 96 per cent, on the back of rise in disbursements across most of our partners. We continue to look at overall protection growth across individual and group platforms in an agnostic manner. On the retirement front, our annuity business has grown by 10 per cent on received premium basis, compared to a 9 per cent de-growth for the industry in the quarter. On APE basis, our annuity business has grown by 39 per cent.”
HDFC Life’s 13th and 61st month persistency for limited and regular pay policies, is at 88 per cent and 54 per cent respectively as against 86 per cent and 51 per cent in first quarter of previous year.
The life insurer’s asset under management (AUM) has swelled by 10 per cent to over Rs 2 trillion at the end of the Q1 FY2023.
Plans IFSC Insurance Office (IIO) at GIFT city
HDFC Life’s overseas subsidiary, HDFC International, has received an in-principle approval from International Financial Services Centres Authority – IFSCA to setup a “global in-house center” at GIFT City. This entity will pool and optimise all processing activities of its international business. This is an important step for the life insurer as eventually it plans to set up an IFSC Insurance Office (IIO) at GIFT city, which can cater to the overseas insurance needs of the Indian diaspora.