The Company registered 10% decline in net premium income in Q3FY2021. The commission expenses declined 13% and operating expense dipped 7% in Q3FY2021.

The Value of New Business (VNB) for the quarter stood at Rs 428 crore with an expansion in VNB margin to 25.7%, from 20.9% in the corresponding period last year. VNB for 9MFY2021 stood at Rs 1030 crore with a margin of 26.0%, up from 21.0% for 9MFY2020.

Profit before Tax (PBT) grew by 7.6% to Rs 327 crore in Q3FY2021 and 7.9% to Rs 968 crore in 9MFY2021. This was due to a strong 24% growth in underwriting (policyholder) profits from Rs 426 crore in 9MFY2020 to Rs 528 crore in 9MFY2021.

New business premium grew by 14% yoy in Q3FY2021 to Rs 3443 crore. The Annuity business registered a robust growth of 125% to Rs 518 crore of new business received premium in Q3FY2021. Traditional long-term savings business grew by 36.2% in Q3FY2021.

The focus on maintaining Balance Sheet resilience through a robust risk management mechanism and investment policy has helped ensure zero Non Performing Assets (NPAs) since inception and across market cycles.

The Company offers a range of products across protection and savings solutions to meet the specific needs of customers. During 9MFY2021, the protection APE was Rs 703 crore resulting in an improvement in share of APE from 14.1% for 9MFY2020 to 17.8% in 9MFY2021. As a result, new business sum assured was Rs 161161 crore for Q3FY2021, a growth of 22.2% as compared to Rs 131912 crore for Q3FY2020.

The new business sum assured was Rs 411500 crore for 9MFY2021, a growth of 2.1% as compared to Rs 403082 crore for 9MFY2020.

New business sum assured grew by 22.2% yoy in Q3FY2021 along with expansion in new business premium by 14.0% yoy in the same period. The Company was further able to strengthen its position as the private market leader on new business sum assured, with a market share of 13.0% during 9MFY2021, up from 11.8% for FY2020.

The Company has strong focus on improving the quality of business and customer retention which is reflected in 13^th month persistency ratios. 13^th month and 49^th month persistency at 8MFY2021 stand at 82.7% and 63.3% respectively.

The cost to total weighted received premium (TWRP) ratio stood at 14.6% in 9MFY2021 compared to 16.6% in 9MFY2020. The cost to TWRP for the savings business stood at 9.3% in 9MFY2021 compared to 11.1% in 9MFY2020.

The total assets under management of the Company was Rs 204872 crore end December 2020, a growth of 34% over Rs 152968 crore March 31, 2020. The Company had a debt-equity mix of 54:46 end December 2020. 96.5% of the debt investments are in AAA rated securities and government bonds.

Companys net worth was Rs 8917 crore end December 2020. The solvency ratio was 226.1% against regulatory requirement of 150%.

The embedded value per share stood at Rs 184.2 per share end December 2020.

Financial Performance 9MFY2021

The net profit of the company has increased from Rs 889 crore in 9MFY2020 to Rs 896 crore in 9MFY2021. Further, the policyholders surplus (excluding participating line of business) increased from Rs 426 crore in 9MFY2020 to Rs 528 crore in 9MFY2021.

Value of New Business (VNB) for 9MFY2021 was Rs 1030 crore. With an APE of Rs 3954 crore, VNB margin was 26.0% for 9MFY2021 as compared to 21.0% for 9MFY2020. The increase in VNB margin is primarily on account of increase in protection mix and growth in non-linked business.

Net premium earned (gross premium less reinsurance premium) increased by 3.1% from Rs 22404 crore in 9MFY2020 to Rs 23094 crore in 9MFY2021.

Total investment income moved up to Rs 40756 crore in 9MFY2021 from Rs 6781 crore in 9MFY2020. Other income increased from Rs 59 crore in 9MFY2020 to Rs 71 crore 9MFY2021.

Total expenses (including commission) decreased by 12.5% from Rs 3766 crore in 9MFY2020 to Rs 3295 crore in 9MFY2021. Commission expense (including rewards) decreased by 17.5% from Rs 1143 crore in 9MFY2020 to Rs 943 crore in 9MFY2021. New business commission (including single premium) has decreased from Rs 823 crore in 9MFY2020 to Rs 623 crore in 9MFY2021.

Renewal commission has increased from Rs 264 crore in 9MFY2020 to Rs 274 crore in 9MFY2021. Operating expenses of Rs 2352 crore in 9MFY2021 (9MFY2020: Rs 2623 crore) comprised of unit fund expenses (including goods and service tax on linked charges) amounting to Rs 486 crore (9MFY2020: Rs 492 crore) under the unit-linked portfolio. The unit fund expenses under unit-linked portfolio is directly offset by a change in valuation of policyholder liabilities.

Operating expenses of other than unit linked portfolio decreased by 12.4% from Rs 2131 crore in 9MFY2020 to Rs 1866 crore in 9MFY2021 primarily on account of decrease in expenses relating to employee remuneration and welfare benefits, advertisement cost and travel and business conferences expenses.

Claims and benefit payouts increased by 8.7% from Rs 13173 crore in 9MFY2020 to Rs 143.23 billion in 9MFY2021 primarily on account of increase in death and maturity claims.

Change in actuarial liability, including funds for future appropriation, increased from Rs 11334 crore in 9MFY2020 to Rs 45253 crore in 9MFY2021. Fund reserve, which represents liability carried on account of units held by unit linked policyholders, increased from Rs 5256 crore in 9MFY2020 to Rs 37360 crore in 9MFY2021. The increase in fund reserves is primarily due to higher investment income in the unit linked portfolio. Non-unit reserve increased from Rs 5921 crore in 9MFY2020 to Rs 7828 crore in 9MFY2021.