New Delhi: HDFC Life Insurance on July 21 reported its net profits up by 15 per cent for the June quarter of the Financial Year 2023 to Rs 415 crore in comparison to Rs 361 crore a year back.
The insuring company’s net premium income grew by 16.5 per cent and stood at Rs 11,479 crores against Rs 9,847 crores in the year-ago period.
Insurer’s financial performance
Further, the company reported annualised premium equivalent (APE), a measure used for the new business written by a life insurance company of Rs 2,328 crores.
HDFC’s insolvency ratio during the April-June quarter of FY23 improved to 200 per cent against 183 per cent in the corresponding period.
The solvency ratio of a life insurance company measures its cash flow compared to the amount it owes as total life cover.
The firm’s value of new dealings which measures the expected profits gained from new premiums grew by 18 per cent to RS 610 crores versus Rs 518 crores.
HDFC sees beyond growth
In a statement, the bank’s managing director and chief executive officed Vibha Padalkar said, “HDFC Bank Ltd. now holds 50.4 percent of HDFC Life. Our focus is on strengthening our partnership with HDFC Bank, enhancing collaboration, and maximising customer engagement within our group.”
Adding further she said that even though their growth is high by a favourable base, they believe that the pickup in protection is justifiable and the growth is anticipated to be as per the company’s expectations for the year.
The insuring company is optimistic about coming opportunities which will allow the company to grow in the life insurance sector, however, it aims in going beyond just business growth.
Finance Minister Nirmala Sitharaman in the budget of 2023 declared that income from traditional insurance policies having premiums over Rs 5 lakh will not be exempted from taxes.
On Friday, which is the last day of the trading week, HDFC’s shares were trading down by nearly 4 per cent at Rs 636.50 per share on BSE.
