HDFC Life Insurance Company Ltd on Tuesday reported a 12.4 percent year-over-year increase in net profit at Rs 357.52 crore for the quarter ended March 31, 2022.
The private sector life insurer had posted a net profit of Rs 317.94 crore last year.
In January-March, total income was Rs 16,054.94 crore, compared to Rs 19,191.32 crore in the same quarter of 2020-21, HDFC Life said in a regulatory filing.
Out of this, net inflows amounted to Rs 14,289.66 crore, up from Rs 12,868.01 crore in the same period a year ago.
For the full year 2021-2022, net profit fell to Rs 1,208 crore from Rs 1,360 crore in the previous fiscal year.
“PAT for FY22 was Rs 1,208 crore, down 11 percent from FY21 due to a higher mortality reserve created during the year. After wave 2 (pandemic), our PAT in Q3 and Q4 steadily improved, with PAT for Q4 a 12 percent year-over-year growth,” said Vibha Padalkar, MD & CEO of HDFC Life.
However, the total premium during the year increased by 19 percent to Rs 45,963 crore from Rs 38,583 crore.
HDFC Life said the assets under management (AUM) crossed the mark of Rs 2 lakh crore, an annual growth rate of 17 percent.
“We delivered a value of new business (VNB) for FY22 of Rs 2,675 crore, 22 percent higher than in FY21. Our VNB has grown at a CAGR (Compound Annual Growth) of 24 percent over the past 5 years,” it said. † VNB refers to the present value of the future profits related to new business booked during the year.
Ms. Padalkar said the company delivered 16 percent growth in individual WRP in FY22 with 14.8 percent and 9.3 percent market share in the private and general sectors, respectively. The weighted premium received (WRP) is the sum of the premium received for the first year during the year and 10 percent of the single premiums, including top-up premiums.
“We continue to deliver consistent all-round performance and rank among the top three life insurers in the industry. Despite the difficult times during the two-year pandemic, our two-year CAGR of 17 percent was nearly twice the industry’s growth rate of 9 percent. total protection grew by 24 percent in terms of APE (Annualised Premium Equivalent) and 47 percent in terms of new business premium,” she added.
The company said it has received approval in principle at the board meeting to raise funds up to Rs 350 crore by issuing debt instruments in one or more tranches based on private placement.
The life insurer said its board has recommended a final dividend of Rs 1.70 per share for 2021-22, which is subject to shareholder approval at the subsequent annual general meeting.
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