HDFC Life Insurance Company Ltd on Tuesday reported a 12.4 per cent year -on -year increase in net profit at Rs 357.52 crore for the quarter ended March 31, 2022.
The private sector life insurer has recorded a net profit of Rs 317.94 crore for the past year period.
During January-March, total revenue amounted to Rs 16,054.94 crore, compared to Rs 19,191.32 crore in the same quarter 2020-21, HDFC Life said in a regulatory filing.
Of this, net premium income was Rs 14,289.66 crore, up from Rs 12,868.01 crore in the previous year.
For the full year 2021-22, net profit dropped to Rs 1,208 crore, compared to Rs 1,360 crore in the previous fiscal year.
“The PAT for FY22 was at Rs 1,208 crore, a decrease of 11 per cent over FY21 due to higher death reserves created during the year. Post wave 2 (pandemic), our PAT in Q3 and Q4 improved continuously, with the PAT for Q4 recorded 12 per cent year -on -year growth, ”said Vibha Padalkar, MD & CEO, HDFC Life.
Total premiums for the year, however, increased 19 per cent to Rs 45,963 crore from Rs 38,583 crore.
HDFC Life said its assets under management (AUM) surpassed the Rs2 lakh crore level, registering an annual growth of 17 per cent.
“We delivered a new business value (VNB) for FY22 of Rs 2,675 crore, 22 per cent higher than FY21. Our VNB has grown at 24 per cent CAGR (compounded annual growth rate) over the past 5 years,” he said. VNB refers to the present value of future profits associated with new business written during the year.
Ms Padalkar said the company recorded 16 per cent growth in individual WRP in FY22 with market shares of 14.8 per cent and 9.3 per cent respectively in the private and overall sectors. The weighted premium received (WRP) is the total first year premium received during the year and 10 per cent of the single premium including top -up premium.
“We continue to deliver consistent overall performance and are listed among the top three life insurers in the industry. Despite very challenging times during the two -year pandemic, our two -year CAGR of 17 percent nearly doubled industry growth of 9 percent. Overall coverage increased by 24 per cent in terms of APE (Annual Premium Equivalent) and 47 per cent in terms of new business premium, “he added.
The company said it had received principle approval at the board meeting to raise funds of up to Rs 350 crore by issuing debt instruments in one or more tranches based on private placements.
The life insurer said its board has recommended a final dividend of Rs 1.70 per equity share for 2021-22 which is subject to shareholders ’approval at the next annual general meeting.
(Except for the headline, this story has not been edited by AGRASMARTCITY staff and is published from a syndicated feed.)