BackHDFC Life Q1 net profit rises 21%; shares fall
Shares of HDFC Life were trading over a per cent lower at ₹536 apiece on the BSE in afternoon deals
PremiumHDFC Life Insurance Company witnessed 21% growth in its net profit for the first quarter ended June 2022 at ₹365 crore as compared to ₹302 crore in the same quarter last year. Shares of HDFC Life were trading over a per cent lower at ₹536 apiece on the BSE in Tuesday's afternoon deals.
The company's new business margins increased to 26.8% during the quarter from 26.2% in Q1 of the previous year, on the back of profitable product mix and growth in protection business, whereas it saw 25% growth in Value of New Business (VNB) at ₹510 crore.
The total Annualized Premium Equivalent or APE was up 22% to ₹1,904 crore whereas its total embedded value stood at ₹29,709 crore, up 9% from the year-ago quarter. The private insurer's Assets Under Management (AUM) grew 10% during to ₹2,00,123 crore from ₹1,81,272 YoY.
Commenting on the Q1 FY23 performance, Vibha Padalkar, MD & CEO of HDFC Life said “We continue to maintain a consistent growth trajectory, growing by 22% in terms of APE in Q1 FY23. This has enabled us to maintain our market leadership as a ‘Top 3 life insurer’ across individual and group business. Our product mix remains balanced, with non-par savings at 35%, participating products at 30%, ULIPs at 25%, individual protection at 5% and annuity at 6%, based on individual APE."
Post the dividend payout of Rs. 1.70 per share, approved by its shareholders in the annual general meet (AGM), HDFC Life's solvency stands at 178%. In order to further strengthen solvency to fuel growth, the company said it will continue to evaluate raising equity capital as needed.
“Our protection share based on APE improved from 15.7% last year to 16.9% during Q1 FY23. Our credit protect business has registered strong growth of 96%, on the back of rise in disbursements across most of our partners. We continue to look at overall protection growth across individual and group platforms in an agnostic manner," Padalkar added.
Further, its pensions subsidiary HDFC Pension, crossed the 30,000 crore AUM mark and has almost doubled its AUM in just 15 months. As on June 30, 2022, HDFC Pension had a market share of 38%, maintaining its leadership position as private Pension Fund Manager (PFM) in terms of NPS AUM.
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