HDFC Life Q3 PAT rises 3.27% YoY to Rs 274 cr

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The private life insurer reported a 3.27% rise in standalone net profit to Rs 273.65 crore in Q3 FY22 as against Rs 264.99 crore in Q3 FY21.

HDFC Life Insurance Company's total income fell 32.68% to Rs 14,222.22 crore in Q3 FY22 over Q3 FY21. Profit before tax in Q3 FY22 stood at Rs 275.90 crore, up 3.33% over Q3 FY21.

Net premium income during increased 27.80% year on year to Rs 12,124.36 crore. Income from investments (net) slumped 82.91% to Rs 1,981.78 crore in Q3 FY22 over Q3 FY21. The life insurer's solvency ratio stood at 190% for 9M FY22 as against 202% in 9M FY21. The ratio is above the prescribed regulatory limit of 150%.

Value of New Business stood at Rs 1,780 crore in 9M FY22, an increase of 26% over the same period last year. New business margin decreased to 26.5% for 9M FY22 versus 25.6% in 9M FY21.

Total APE grew 22% year on year to Rs 6,709 crore while individual APE rose 20% year on year to Rs 5,577 crore in 9M FY22. Annualized Premium Equivalent (APE) is the sum of annualized first year regular premiums and 10% weighted single premiums and single premium top-ups.

Assets under Management (AuM) increased 18% to Rs 1,94,738 crore in 9M FY22 compared 9M FY21. The company's net worth rose 12% to Rs 9,054 crore in 9M FY22 from Rs 8,089 crore in 9M FY21.

Vibha Padalkar, MD & CEO said "We are happy to announce that effective January 1, 2022, Exide Life has become our fully wholly owned subsidiary as part of the overall merger process. In the nine months ended December 31, Exide Life's individual WRP grew 31%, comfortably higher than industry growth of 20%."

We continued to deliver consistent and robust growth of 21% in 9M FY22, resulting in a private market share of 15.2% in terms of Individual WRP. On a 2 year CAGR basis, we registered a growth of 14%, compared to a 5% growth for the overall life insurance industry, whilst maintaining a balanced and profitable product mix. On the claims front, we have honoured close to 3 lakh claims during 9M FY22. Gross and net claims were recorded at Rs. 4,657 crore and Rs. 3,406 crore, respectively. We have witnessed 19% growth in renewal premiums and further improvement in our 13th and 61st month persistency which now stands at 92% and 57% respectively vs. 89% and 53% in 9M FY21. The 13th and 61st month persistency for limited and regular pay policies was 87% and 53% respectively for 9M FY22 vs. 83% and 47% in previous year."

HDFC Life Insurance Company is a joint venture between HDFC, India's leading housing finance institution and abrdn (Mauritius Holdings) 2006, a global investment company. HDFC Life is a leading long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity and health.

Shares of HDFC Life Insurance Company fell 2.03% to Rs 636.85 on the BSE.

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