Private life insurer, HDFC Life, has recorded a profit after tax of Rs 913 crore in the first nine months of FY 19 as opposed to Rs 762 crore during the same time in FY18, thereby registering a growth of 20 per cent.
In Q3 of FY19, the insurer posted profits to the tune of at Rs 245.63 crore, up 18.3 per cent. The company’s profit stood at Rs 207.32 crore in the same quarter of 2017.
The net premium income of the company saw a 27.3 per cent rise in the third quarter of FY 19 from Rs 5419.9 crore in Q3 FY 18 to Rs 6897.7 crore in Q3 FY 19. In the first nine months of FY 19, the net premium income of the company stood at Rs 18, 676 crore as opposed to Rs 14,470 crore in the first nine months of FY 18, thereby registering a growth of 29.06 per cent.
The new business premium, which is a combination of individual business premium and group business premium, has reported a 41 per cent rise from Rs 7,065 crore in the first nine months of FY 18 to Rs 9,940 crore in the first nine months of FY 19.
However, the income from investments decreased from Rs 9,531.42 crore for the period nine months ended December 2017 to Rs 5,271.84 crore for the period nine months ended December 2018, primarily due to lower mark to market gains In the unit linked segment compared to previous period due to market movements.
The 13-month persistency ratio, which is a measure of the total business that the insurance company is able to retain without policies getting lapsed in a year, has remained the same at 86% per cent in the first nine months of FY 19. However, the sixty-first month has seen a decline from 53 per cent in the first nine months of FY 18 to 50 per cent in the same period in FY 19.
Solvency ratio, which is a measure of a company’s cash flow that is sufficient to meet its short-term and long-term liabilities, has also remained the same at 1.91. The minimum regulatory requirement is 1.5.
The net worth of the company has seen a 31 per cent rise from Rs 4,359 crore to Rs 5,690 crore. Return on equity of the life insurer has gone down from 24.9 per cent to 23.4 per cent in the first nine months of FY 19.
Vibha Padalkar, MD & CEO said “Our commitment towards diversification, both in terms of product mix and distribution has helped us withstand macro as well as regulatory headwinds. We will continue to focus on profitable growth and providing the best value proposition to our partners, customers and shareholders.”
The assets under management of the company in the first nine months of FY 19 is Rs 1.17 trillion, up 13 per cent from Rs 1.04 trillion in the same period last fiscal.
Protection APE has increased from Rs 407 crore in the first nine months of FY18 to Rs 673 crore in the first nine months of 9M FY19, up 66%. Protection business of the insurer comprises 28.1% of the total new business premium.