HDFC Life, which has seen its total premium growing by 21 per cent to Rs 235.6 billion,has recorded a 24 per cent jump in its profit after Tax (PAT) to Rs11.1 billion during 2017-18.
The company's insurance profit (policyholder surplus) comprised of 76 per cent of the total PAT for the year ended Mar 31, 2018.
The life insurance joint venture, where UK major Standard Life is the foreign partner, registered a growth of 32 per cent in its new business to Rs 113.50 billion and 13 per cent rise in renewal business to Rs122.10 crore in 2017-18.
On consolidated basis, the net profit grew 40 per cent to Rs 350 crore in January-March, 2017-18.
Net premium collection during the fourth quarter of last fiscal grew to Rs 8,900.02 crore as against Rs 7178.40 crore in the year-ago period.
Its total income was down at Rs 8,134.61, during the March quarter of 2017-18, from Rs 12,086.96 crore in same quarter of preceding fiscal.
The company made a loss of Rs 936.79 crore from investment income during the quarter under review, as against a gain of Rs 4,866.16 crore in same period of previous fiscal.
However, it received Rs 154.08 crore as transfer of funds from shareholders account in March quarter, up from Rs 18.98 crore in the year-ago period.
For the entire fiscal 2017-18, the standalone net profit increased to Rs 1,109 crore, from Rs 892.13 crore year ago.
The company which recently listed itself in the Indian bourses, posted a 40.4 percent rise in its net profit for the fourth quarter ended March 31, 2018 at Rs 346.86 crore compared to same quarter last fiscal.
The life insurer’s assets under management(AUM) rose by 16 per cent to Rs1,066.0 billion, with underlying Debt: Equity mix of 61:39 during the reporting period..
The company’s value of new business (VNB) grew by 39 per cent to Rs 12.8 billion where new business margins (post overrun) grew to 23.2 per cent for the year ended Mar 31, 2018.
Amitabh Chaudhry, MD & CEO, HDFC Life said “We had a robust year with strong growth and it continued to deliver consistent performance across all metrics. The balanced product mix, diversified distribution network and customer centric approach has helped deliver profitable growth. We will continue to work hard and invest in leveraging technology and re-imagine the life insurance business.” he said.
The life insurer has managed to maintain a balanced product mix with ULIPs contributing 57 per cent and conventional products forming 43 per cent of the individual APE(Annualized Premium Equivalent). It has continued focus on protection business, thereby contributing 26 per cent of total new business premium (FY17: 22 per cent). 25 per cent of company’s individual policies sold during FY18 were protection business policies (FY17: 25 per cent)’’ said Chaudhry, .
APE is the sum of annualised first year regular premiums and 10 per cent weighted single premiums and single premium top-ups
The HDFC Life’s Embedded Value was at Rs 152.2 billion as on Mar 31, 2018 and Operating return on Embedded Value (EVOP/Opening Embedded value) at 21.5%;
The persistency ratios continue to trend strongly across various cohorts. While 13th month persistency increased to 87% (FY17: 84%), 61st month persistency was at 51% compared to 59% last year. This reduction was primarily due to the impact of specific cohort of business written in FY13.
The life insurance company has paid an interim dividend Rs 1.36 / share amounting to Rs 3.3 billion including Dividend Distribution Tax (DDT), implying dividend payout ratio of 30 per cent in FY18.
With a stable solvency ratio of 192 per cent, the life insurer’s networth and solvency ratio increased by 24 per cent to Rs 47.2 billion as at Mar 31, 2018.
The company has a diversified distribution mix, backed by presence across the country through 414 HDFC Life offices, along with wide access to the branches of our 149 bancassurance and 22 non-traditional ecosystem partnerships as on Mar 31, 2018. Cross-selling to group customers formed 6.2 per cent of the individual new business policies sold during FY18.
The company continued to harness the long term growth potential of the sector, with specific focus on protection,he said.
Among its subsidiaries, HDFC Pension Management Company saw its assets under management rise to Rs 2600 crore as on March 31, 2018, showing an almost 120 percent growth over the previous year. Similarly, the insurer's subsidiary HDFC International Life and Re Dubai had gross revenues of USD 1.9 million for FY18.
Stock of the company closed 0.13 per cent up at Rs 492.10 on BSE.