Private sector life insurer HDFC Life Insurance on Monday reported a 32.97% year-on-year fall in its standalone net profit to `302.35 crore for the 1st quarter this fiscal, against `451.09-crore net profit for the very same period last fiscal, as it has designed `700 crore of excess mortality reserve. During the quarter beneath evaluation, the company’s new enterprise premium stood at `3,767 crore, up 44% y-o-y, even though renewal premium rose 20% y-o-y to Rs 3,889 crore.
Vibha Padalkar, MD & CEO, stated, “Against the backdrop of disruption in business on account of localised lockdowns, and surge in cases during the second wave, we recorded 22% growth and market share of 17.8% in private sector in terms of individual WRP (weighted received premium). We clocked 40% growth in terms of value of new business and we achieved a new business margin of 26.2% in Q1.” Padalkar stated the insurer’s item mix continued to stay balanced and its annuity enterprise witnessed sturdy development of 61% in 1st quarter.
In comparison to Q1FY21, the business, a joint venture in between HDFC Ltd. and Standard Life Aberdeen, clocked larger renewal collections, with 13th month persistency enhancing from 87% to 90%.
“”In the quarter gone by, we witnessed a steep rise in death claims, with peak claims in wave 2 at about 3-4 occasions the peak claim volumes in the 1st wave. We paid more than 70,000 claims in Q1. The gross and net claims supplied for amounted to Rs 1,598 crore and Rs 956 crore, respectively,” Padalkar stated, adding based on its present claims expertise, the business set up an further reserve of Rs 700 crore to service the claims intimations anticipated to be received.