Private life insurer HDFC Life is looking to break-even by the end of the current financial year.
“We are looking at a growth of 15-16 per cent and margins should be in the region of 16-18 per cent during 2011-12. So, by the end of the year, our main target is to break-even,” said Managing Director and Chief Executive Officer, Amitabh Chaudhry.
Credit requirement for the year would be Rs 100-120 crore, Chaudhry said.
The insurer reduced its operating losses for the year to Rs 90 crore from Rs 275 crore in 2009-10.
HDFC Life is a joint venture between Housing Development Finance Corporation (HDFC) Ltd and UK-based insurer, Standard Life. HDFC holds a stake of 74 per cent, while the British insurer accounts for the remaining 26 per cent — the maximum permitted under Indian laws.
HDFC Life reported a 29 per cent rise in total premium income at Rs 9,004 crore in 2010-11, compared with Rs 7,005 crore in the corresponding period a year ago. Collections from new policies stood at Rs 4,065 crore during the year, a rise of 12.26 per cent.
The company also said the embedded value of its business stood at Rs 4,120 crore as of
March 31, up from Rs 3,380 crore a year ago. A company's embedded value is the sum of the net worth of the company and the future profits from policies that have already been written.
