HDFC Life Insurance, the third-largest private sector life insurance company, reported a 16 per cent growth in net income to Rs 365 crore for the December quarter. The increase was driven by a significant rise in investment gains, which surged to Rs 11,300 crore due to a massive market rally.
Net premium income inched up by 6 per cent to Rs 15,273 crore in the quarter, while the value of new businesses declined by 2 per cent as the company faced challenges in selling high-value policies after the last Budget introduced a tax on policies with premiums over Rs 5 lakh.
Despite this, adjusted for Exide Life, revenue rose by 36 per cent to Rs 26,735 crore. The value of new business (VNB) fell by 2 per cent to Rs 856 crore, and the VNB margin remained flat at 26.83 per cent. The company mentioned that overall premium growth was in the single digits, impacted by poor sales of policies with premiums above Rs 5 lakh. Smaller ticket policies, however, grew by 17 per cent, led by better sales in small towns.
“It was business as usual but is slowly turning in now. Overall premium growth was in the single-digits, impacted by the poor sales of policies with an above-Rs 5 lakh annual premium. But smaller ticket policies grew 17 per cent, primarily led by better sales in small towns, where they 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.
HDFC Life booked gains of Rs 11,300 crore from the market rally, up from Rs 4,900 crore in the year-ago period and Rs 8,000 crore in the previous quarter. The company's total expense ratio stood at 19.6 per cent, marginally up from 19.4 per cent a year earlier. The solvency ratio fell to 190 from 209 but is still well above the minimum regulatory requirement of 150.
Padalkar mentioned that the company's overall product mix comprises 32 per cent unit-linked insurance plans, 28 per cent non-par savings, 28 per cent participating policies, 7 per cent annuities, and 6 per cent protection. The share of Ulips rose 11 per cent, annuities by 1 per cent, and protection by 2 per cent, while that of par-savings fell 1 per cent and non-par savings declined 11 per cent.
Retail protection annualised premium equivalent grew 36 per cent, and credit protection rose 21 per cent, contributing to assets under management rising by a fifth to Rs 2.8 lakh crore. Additionally, 18 per cent of the profit in the quarter came from renewal policies.
Regarding the IRDAI plans to hike the surrender value of policies midway, Padalkar agreed with the proposal conceptually, but the industry is seeking clarity on the percentage of the premium that has to be paid back. The HDFC Life stock closed almost 1 per cent lower at Rs 637.55 on the BSE, despite a 1.2 per cent rally in the benchmark Sensex.
(With PTI inputs)
READ MORE: TCS Q3 net profit rises 2 per cent to Rs 11,058 crore, revenue surges 4 per cent YoY
READ MORE: Infosys surges over 7 per cent after Q3 profit aligns with estimates
Top News
OPINION | SHANKARACHARYAS: CONGRESS PAWNS IN POLITICAL GAME?
‘It just felt like we were..’, Anurag Kashyap pens a long note after watching 12th Fail
WATCH | Cheeky sledge from David Warner provokes Steve Smith to golden duck in BBL clash
Related Business News
Rupee climbs for eighth straight day by 11 paise to 82.90 against US dollar
Wipro Q3 profit declines 12 per cent YoY to Rs 2,694 crore, revenue falls over 4 per cent
Mukesh Ambani re-enters USD 100 billion club amid surge in RIL stock
TSC stock soars over 4 per cent as Q3 income rises 8 per cent to Rs 11,735 crore
Infosys surges over 7 per cent after Q3 profit aligns with estimates
Latest News
HDFC Life Q3 net profit climbs 16 per cent to Rs 365 crore led by market rally
South Africa remove captain David Teeger a week before U19 World Cup in wake of potential protests
OPINION | SHANKARACHARYAS: CONGRESS PAWNS IN POLITICAL GAME?
‘It just felt like we were..’, Anurag Kashyap pens a long note after watching 12th Fail
© 2009-2024 Independent News Service. All rights reserved.
World Hindi Day 2024: A Look At Government’s Steps for Hindi’s Growth And Prosperity
India’s Space Odyssey: From Modest Beginnings to Lunar Landings | ISRO’s Journey | Perspective
Aaj Ki Baat: ED team attacked during raid in West Bengal
Ayodhya Ram Mandir Inauguration..Who will win the election 24?
Haqiqat Kya Hai: Has BJP prepared its mission for 2024 elections?
OPINION | SHANKARACHARYAS: CONGRESS PAWNS IN POLITICAL GAME?
Debris of IAF’s AN-32 aircraft that ‘mysteriously’ went missing in 2016 found after 8 yrs
‘Damage done, will be visible in elections’: Ex-Congress MLA after party declines Ram Mandir invite
PM Modi cleans Kalaram temple premises in Nashik, urges everyone to keep temples clean | Watch
Bharat Jodo Nyay Yatra, after Manipur’s partial nod, to begin from private ground in Thoubal
‘Clearly an RSS/BJP event’: Sonia Gandhi, Kharge won’t attend Ram Temple ceremony in Ayodhya
Ram Mandir’s first gold gate installed ahead of ‘Pran Pratishtha’ ceremony. See photo
Ram Mandir Ceremony Ayodhya: All educational institutions in UP to remain closed on Jan 22
Ramotsav 2024: UP government to run electric buses on Ram Path, Dharma Path for tourists in Ayodhya
Ram Mandir: Hindu Americans hold massive car rally in Houston, chant ‘Jai Shri Ram’
North Korea to welcome Russian tourists as it opens borders for first time since COVID-19
Israel defends itself at UN’s top court amid allegations of genocide by South Africa
Pannun case: US judge denies request for defence materials by Indian national Nikhil Gupta
US: Joe Biden’s son Hunter pleads not guilty to tax evasion charges after plea deal collapses
Five killed after US, UK militaries launch massive strike against Houthis in Yemen
‘It just felt like we were..’, Anurag Kashyap pens a long note after watching 12th Fail
Michael Jackson’s biopic to release on THIS date
‘Indian Tarantino’: Yo Yo Honey Singh reviews Ranbir Kapoor, Rashmika Mandanna’s Animal
Jhalak Dikhhla Jaa 11: Awez Darbar to quit show after suffering knee injury during rehearsals
Prabhas-starrer Kalki 2898 AD’s release date OFFICIALLY unveiled | Deets inside
WATCH | Cheeky sledge from David Warner provokes Steve Smith to golden duck in BBL clash
SA20 2024 Match 3: PR vs PC pitch report – How will surface at Boland Park in Paarl play?
Tim Southee scripts history by recording 150 T20I wickets; Babar surpasses Guptill in major record
Records galore as Mitchell-Williamson power New Zealand to dominant win against Pakistan in 1st T20I
Sumit Nagal becomes first Indian to qualify for Australian Open 2024 main draw since 2021
Book your Republic Day Parade tickets online before January 25: Here’s a quick guide
Oppo Reno 11 5G series arrives in India, to be available from this date: Check pricing and key specs
Google Assistant removing these 17 features: What it means for you?
Government Alert: What you should know about the ‘Call Forwarding Scam’ advisory
Flipkart Republic Day Sale: Big discount on Nothing Phone (2) and CMF 65W charger | DETAILS
How many road accidents occur in India every year? What is the reason for this? Know here
How will Maldives’ tourism, economy be affected if India decides to pull the plug? | Explained
World Day of War Orphans 2024: When did it start? Know everything about it | Explained
MARCOs conduct rescue ops on hijacked ship in Arabian sea | Who are Indian Navy’s elite commandos?
Why is Chinese media praising PM Modi’s ‘successful’ foreign policy? Explained
Horoscope Today, January 12: Promotion on cards for Librans; know about other zodiac signs
Horoscope Today, January 11: Virgos’ family relations to get stronger; know about other zodiac signs
Horoscope Today, January 10: Money-related problems to end for Gemini; know about other zodiac signs
Horoscope Today, January 9: Happy day for Cancerians; know about other zodiac signs
Horoscope Today, January 8: Geminis need to control anger; know about other zodiac signs
Superfood Fennel Seeds: Know THESE 5 benefits of Saunf
Relactation: What is it? Know ways to get your baby back to breastfeeding
Short-Term Intensive Fasting: Is it beneficial for health? Know details
8 tips to avoid urine infections in winter
5 convincing reasons to make routine Cervical screenings a priority
Boho Saree to Dress: 5 fashionable outfits for Makar Sankranti 2024 celebration
Kalaram Mandir: How to reach, timings and more about Nashik’s famous temple
Makar Sankranti 2024: How is this auspicious festival celebrated in different states of India?
Ayodhya Travel Guide: Here’s how to reach by flights | Know details
Indian single malt wins ‘Best World Whiskey’ title at Barleycorn Awards 2023