HDFC Life Q1FY22 Results: PAT down 33% YoY at Rs 302 cr on higher claim settlements; 70,000 insurance claims paid for, gross claims worth Rs 1,598 cr in June quarter
HDFC Life Q1FY22 Results – HDFC Life Insurance Company Limited today posted a net profit of Rs 302 cr for the quarter ended Q1FY22 which was down by almost 33 per cent from the PAT (Profit After Tax) in Q1FY21 at Rs 451 cr. The lower PAT is on the back of higher claims reserving towards heightened claims intimation expected in Q2 and Q3, the company has said in its exchange filing
HDFC Life Q1FY22 Results – HDFC Life Insurance Company Limited today posted a net profit of Rs 302 cr for the quarter ended Q1FY22 which was down by almost 33 per cent from the PAT (Profit After Tax) in Q1FY21 at Rs 451 cr. The lower PAT is on the back of higher claims reserving towards heightened claims intimation expected in Q2 and Q3, the company has said in its exchange filing.
“The strength of our balance sheet and back book surplus has enabled us to absorb the shock of heightened claims, whilst continuing to deliver growth. With signs of the second wave receding, over the past month, we have seen a gradual pick-up in economic activity, across parts of the country. We see greater customer engagement and an increased interest in life insurance policies,” Vibha Padalkar, Managing Director (MD) and Chief Executive Officer (CEO) at HDFC Life said in its statement in the exchange filing.
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In its filing to exchanges, the company declared a “steady performance” with a 30 per cent growth in APE while registering a growth of 40 per cent in Value of New Business.
See Key Highlights Here:
Ranked #2 in private sector, basis individual premium (market share of 17.8 per cent)
26.2 cent New Business Margin on the back of growth and balanced product mix
Rs 700 cr of excess mortality reserve created
20 per cent growth in renewal premium
Solvency healthy at 203 per cent
“The pandemic has impacted lives across the world. For most organizations it has been a test of resilience and agility to adapt to the ever-evolving situation. As a leading Life Insurance company, we are determined to help our customers and support our employees and other stakeholders during these trying times,” Padalkar said.
“Against the backdrop of disruption in business on account of localised lockdowns, and surge in cases during the second wave, we recorded 22 per cent growth and market share of 17.8 per cent in private sector in terms of Individual WRP,” Padalkar said.
Vibha Padalkar: HDFC Life clocked 40 per cent growth in terms of value of new business and we achieved a New Business Margin of 26.2 per cent in Q1.
Vibha Padalkar: Product mix continues to remain balanced and our annuity business witnessed strong growth of 61 per cent in this quarter.
Vibha Padalkar: In comparison to Q1 of last fiscal, the Company clocked higher renewal collections, with 13th month persistency improving from 87 per cent to 90 per cent.
Vibha Padalkar: Steep rise in death claims, with peak claims in wave 2 at around 3-4 times of the peak claim volumes in the first wave in the quarter gone by.
Vibha Padalkar: 70,000 claims paid in Q1 with the gross and net claims provided for amounted to Rs 1,598 cr and Rs 956 cr respectively.
Vibha Padalkar: HDFC Life sets up an additional reserve of Rs 700 cr to service the claims intimations expected to be received, based on current claims experience. “Our endeavour is to promptly settle every bonafide claim,” the MD and CEO said.
The stocks of HDFC Life ended at Rs 678.85 on the NSE on Monday. The shares were down by almost 2.7 per cent.
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