HDFC Life was listed on the exchanges in November 2017
Private life insurance company HDFC Life Insurance posted a 40.4 percent rise in its net profit for the fourth quarter ended March 31, 2018, at Rs 346.86 crore compared to same quarter last fiscal. The new business premiums for FY18 saw a 32 percent growth and stood at Rs 11350 crore.
This was the first full quarter post the listing for which the insurer reported results. HDFC Life was listed in November 2017.
The insurer's individual annualized premium equivalent (APE) grew by 31 percent to Rs 4890 crore for FY18 on a year-on-year basis. The company collected the total premium of Rs 23560 crore in FY18, showing a 21 percent growth over the previous fiscal.
On a new business premium basis, protection business' share stood at 25.9 percent in FY18 compared to 21.8 percent in FY17. Protection refers to the pure term insurance products.
Their New Business Margins (post overrun) was 23.2 percent in FY18 compared to 22 percent a year ago. In his post-earnings call, Amitabh Chaudhry, MD & CEO, HDFC Life said that protection products tend to have higher margins and that was one factor that led to an increase in margins.
On the products front, he said that they have put in the effort to keep the unit-linked insurance products (Ulips) share in their business under check. While for FY18 as a whole, it rose to 57 percent from 52 percent, Chaudhry explained that they have sequentially brought it down.
"We ended Q3 with 59 percent Ulips in our business mix, which we brought down to 57 percent during Q4. We have stated earlier that we would want Ulips to be 50-60 percent of the business mix and have worked hard to bring the share down," he added.
A report by Spark Capital said they expect HDFC Life's full-year APE growth to be ~35 percent year-on-year for the financial year 2017-18 (FY18).
In terms of the quality of the business, the 13th-month persistency (a measure of the renewals) grew to 87 percent in FY18 from 84 percent in FY17. The assets under management (AUM) rose by 16 percent to Rs 1.06 lakh crore at the end of FY18 on a year-on-year basis.
Among its subsidiaries, HDFC Pension Management Company saw its assets under management rise to Rs 2600 crore as on March 31, 2018, showing an almost 120 percent growth over the previous year. Similarly, the insurer's subsidiary HDFC International Life and Re Dubai had gross revenues of USD 1.9 million for FY18.
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