HDFC Life first premium income at Rs 232.5 cr in FY04

HDFC Standard Life Company yesterday declared a first premium income of Rs 232.5 crore for fiscal year 2004.

The company, which today ranks second in terms of number of policies sold and third in terms of premium income, said the growth in its performance comes on the back of bancassurance and sales of unit-linked plans.

The board of directors of HDFC Standard Life which met yesterday declared reversionary bonus rates equal to the interim bonus rates declared last fiscal for the participating 'with-profits' policyholders.

This follows the significant fall in long-term interest rates over the past few years and have again declined in fiscal year 2004, said HDFC Standard Life managing director and chief executive officer Deepak Satwalekar.

"As a result of falling interest rates, we have reduced our interim bonus rates this year, and unless there is a recovery in long-term interest rates, bonus rates will have to be reduced in the future," said Satwalekar.

This year the board has reduced the bonus rates from 3.75 per cent to 3.25 per cent on the sum assured for regular premium policies. HDFC Standard Life generated an annualised new premium income of Rs 232.5 crore, registering a growth rate of 76 per cent.

The aggregate sum assured since inception has crossed Rs 13,500 crore, with HDFC Standard Life having covered over 4,50,000 lives to date.

Sales through the corporate agency channel including bancassurance grew by 150 per cent to Rs 50 crore. The corporate agency channel accounted for 22 per cent of the company's total new business.

Though a late entrant in launching unit-linked plans, these policies have contributed 27 per cent to sales since its launch in January 2004.

Growth in business in the past 12 months has been driven by its bancassurance partners, consolidation of its presence across locations, increase in the sales force of trained financial consultants and introduction of new insurance and pension solutions on the unit-linked platform, said Satwalekar.

HDFC Standard Life's group business has grown significantly during fiscal year 2004 covering over 73,000 lives for a sum assured of over Rs 4,300 crore.