HDFC Life posts 66.5% increase in profit

HDFC Life recorded 16% positive growth in new business premium income and 11% growth in total premium income

Private general insurer HDFC Life has seen a 66.5 per cent growth in net profit to Rs 451 crore in financial year 2012-13. It recorded 16 per cent positive growth in new business premium income (individual business) and 11 per cent growth in total premium income.

The new business premium income stood at Rs 3,113 crore for FY13 from Rs 2,695 crore in 2011-12. The total premium income stood at Rs 11,323 crore from Rs 10,202 crore in 2011-12.

HDFC Life garnered market share of 17.5 per cent, which is a gain of 200 basis points over the previous year) in individual business (private industry) in terms of Weighted Received Premia (WRP).

The Assets Under Management (AUM) saw 24 per cent growth at Rs 40,108 crore in FY13. In terms of distribution channels, bancassurance channel contributed 72 per cent, agency channel 16 per cent and the remaining 12 per cent by Broker, Direct and Online channels. Amitabh Chaudhry, MD & CEO, HDFC Life, said, “This year will continue to be a tough year for the industry. We have delivered against the set targets, but we would not look to build the top-line at any cost. Along with growth in our business, we will continue to work towards strengthening our risk management practices.”

The company already has a liaison office in Dubai and is looking to expand its presence in the Gulf this financial year. Chaudhry said while the environment was tough, they would be looking to outpace the industry growth this year. HDFC Life is also introducing a new verification process, where a policy will be underwritten only after all verifications have taken place, over and above the KYC process, across all channels.

Vibha Padalkar, ED & CFO, HDFC Life, said despite a tough macro-economic and regulatory environment, the company continued to grow its operations and had invested for a sustainable future without a corresponding increase in operating expenses. She said HDFC Life is also prepared for a smooth transition to the new product regime in 2013-14.