HDFC Life Insurance Company has reported a significant increase in its net profit for the December quarter, with a 16 per cent rise to Rs 365 crore in December quarter. This growth is attributed to a substantial boost from investment gains, which more than doubled to Rs 11,300 crore due to a strong market rally.
Despite a modest 6 per cent increase in net premium income to Rs 15,273 crore, the company faced challenges selling high-value policies following new taxation introduced in the last Budget. However, when adjusted for Exide Life, revenue surged by 36 per cent to Rs 26,735 crore.
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The value of new business (VNB) experienced a slight decline of 2 per cent, and the VNB margin remained stable at around 26.83 per cent. The company’s CEO, Vibha Padalkar, highlighted that smaller ticket policies saw a growth of 17 per cent, particularly in smaller towns, which now represent a significant portion of the company’s market share both in value and volume.
HDFC Life‘s sum assured reached Rs 9.8 lakh crore, marking a 54 per cent increase for the quarter and establishing the company as a market leader among its peers. With 5 crore active policies and assets under management of Rs 2.8 lakh crore, up by 30 per cent, the company maintains its third ranking in this area.
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The company’s product mix includes unit-linked insurance plans, non-par savings, participating policies, annuities, and protection, with notable growth in retail protection annualised premium equivalent and credit protection.
Despite regulatory changes and market challenges, HDFC Life has demonstrated resilience and adaptability, contributing to its robust financial performance in the December quarter.
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”It was business as usual but is slowly turning in now. Overall premium growth was in single-digit impacted by the poor sales of policies with above Rs 5 lakh annual premium.
”But smaller tickets policies grew 17 per cent, primarily led by better sales in small towns, where it grew 14 per cent, taking the overall revenue share from such markets to over two-thirds in value and over 70 per cent in terms of volumes,” Vibha Padalkar, the chief executive of the company told PTI.
With inputs from PTI
