HDFC life announces Q2 results!

• Profit up 6%: HDFC Life Insurance Company reported a 6% year-on-year increase in net profit to ₹326 crore in the quarter ended September 20, whereas net premium income grew 35% on year to ₹10,056.71 crore. Income from investment jumped multi-fold to ₹6,318.81 crore from ₹1,135.12 crore a year ago causing a 90% jump in total income to ₹16,426.03 on a year-on-year basis.
• Market Share expansion: HDFC life’s market share grew by 2.35% to 17.5%, the company has been constantly increasing its market share with a 2-year average growth of 18% as compared to 1% for the entire industry.
• Product portfolio: HDFC life continues to maintain a balanced product mix with share of participating savings, non participating savings, ULIPs, protection and annuity accounting for 33%, 30%, 23%, 9% and 5% of Individual APE respectively. Company’s focus on the protection segment resulted in its 38% growth, thus increasing share from 6% to 9%.

• Operating performance: New business margins (NBM) in this quarter saw an improvement on sequential as well as year-on-year basis on the back of return to growth, favourable product mix and costs being kept under control, for the quarter ended, NBM stood at 25.1%. Individual WRP(Weighted Received Premium) growth of 22% in Q2 helped neutralize the Q1 de-growth. For half year FY21, the company reported a 2% growth in Individual WRP as compared to an 11% decline for the private industry as a whole. Persistency ratio—a measure of how long a customer continues with their policy was at 91% in the quarter ended September compared with 89% a year ago, reaching the highest level in past 6 quarters.

The management said that “Insurance as a category has emerged stronger as a vehicle to protect one’s family and realise their long term financial goals. Customers are more active in decision making resulting in traction in the individual business.”

The company is expected to witness continuing traction in individual protection APE, the management also believes that HDFC life will comfortably beat the industry performance and continue to gain market share.