HDFC Life Insurance posted a 20.3 percent year-on-year (YoY) increase in its September quarter net profit at Rs 286.98 crore backed by a strong growth in the protection business.
The life insurer saw a 25.7 percent YoY growth in its net premiums for Q2FY19 at Rs 6,777.55 crore. For H1FY19, the new business premiums grew 43 percent YoY to Rs 6,290 crore. Also, 28 percent of the individual policies sold during H1FY19 were protection plans.
The share of protection business in the new business premium in H1FY19 was 28.7 percent compared to 26.4 percent a year ago.
Vibha Padalkar, MD & CEO, HDFC Life said their balanced product mix will help the company manage the current macroeconomic conditions (including weakening rupee and liquidity crunch) effectively.
The insurer’s assets under management rose 14 percent YoY to Rs 1.13 lakh crore at the end of the September quarter. The debt-equity mix as on September 30, 2018 was 62:38. Of these, over 96 percent of debt investments are in AAA-rated and government bonds.
HDFC Life’s Indian Embedded Value grew by 17 percent YoY to Rs 16,380 crore. The net worth grew by 22 percent YoY to Rs 5,410 crore.
During the quarter, HDFC Life entered into a series of new partnerships to distribute products. These include tie-ups with Vijaya Bank, Fullerton India and Uber. Padalkar said they have 201 such partnerships for distribution of insurance and added that they are in the process of tying up with another public sector bank.
The value of new business (VNB) increased by 28 percent YoY to Rs 610 crore in H1FY19. The 13th month persistency rose to 87 percent in H1FY19 from 86 percent a year ago. The new business margins increased to 24.3 percent in H1FY19 from 22.4 percent a year ago.
Padalkar took over the new chief executive of the company from September 2018 after CEO Amitabh Chaudhry resigned. He has been named MD and CEO of Axis Bank.
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