HDFC Life Insurance Company has recorded 33%decline in the net profit to Rs 302.35 crore in the quarter ended June 2021 (Q1FY2022).The company has maintained strong growth in the premium collection and exhibited improvement in new business margin of 26.2% in Q1FY2022 on the back of a favourable product mix and cost control measures.

The performance of the company has been impacted due to second wave of covid pandemic with higher death claims and provisioning. The company has created Rs 700 crore of excess mortality reserves.

The value of new business (VNB) jumped 40%to Rs 408 crore in Q1FY2022 from Rs 291 crore in Q4FY2020. The company has posted a 31% surge in total premium collection to Rs 7655.9 crore, driven by a 44%surge in new business premium, while the renewal premium income also moved up 20%.

The company ranked number 1 in terms of Overall New Business Premium in private sector with market share expanding by 160 bps from 20.7% to 22.3%. Its share within the group and individual new business segment stood at 25.9% and 17.8%respectively.

The company continues to maintain a balanced product mix with share of participating savings, non participating savings, ULIPs, protection and annuity accounted for 29%, 32%, 27%, 8% and 5% of Individual APE respectively. Its focus on the protection segment resulted in 57% growth basis overall APE

The company has diversified distribution mix is evidenced by the wide access to customers with nearly 300 partners and 1 lakh+ agents as on June 30,2021. This is further supplemented by 390 branches spread across the country.

The Assets under Management surged 30% to Rs 181272 crore end June 2021 over Rs 139975 crore end June 2020. The Debt:Equity mix was 63:37, while about 98% of debt investments were in G-Secs and AAA bond send June 2021

Networth increased by 18% to Rs 8780 crore end June 2021, while the solvency ratio of the company was healthy at 203% end June 2021.

Embedded Value (IEV methodology) increased 21%to yoy Rs 27331 crore with Embedded Value per share rising to Rs 135.2 per share at end June 2021.

Financial Performance FY2021:

HDFC Life Insurance Company has posted 5%growth in the net profit to Rs 1360.10 crore in FY2021. Total Premium increased 18% to Rs 38584 crore in FY2021, aided by new business growth of 17% and 20% in renewal business. The value of new business (VNB) rose 14% to Rs 2185 crore,while the new business margins improved to 26.1% for FY2021 from 20.5% in FY2020.