HDFC Life’s net profit increased 13% to 358 crore in the quarter ended March 2022 from 318 crore a year ago, led by higher premium income and business margins even as expenses remained high.
Premium income net of reinsurance increased 11% to 14,290 crore in the quarter from 12,868 crore a year ago. Total expenses including commissions increased 15% to 2,430 crore in the quarter from 2,108 crore a year ago.
CEO Vibha Padalkar said the higher expenses were linked to the growth the company has seen over the year. She expects the momentum to continue even in the current fiscal. “Despite the pandemic, we have grown at a compounded rate of 17%. We are reasonably confident that this momentum will continue riding on economic growth as demand for savings and investments will remain strong despite headwinds like inflation,” Padalkar said.
At the end of March 2022, HDFC Life’s total annualised premium equivalent (APE), which is the sum of the annualised first-year regular premiums and 10% weighted single premiums, grew 17% to 9,758 crore from 8,372 crore a year ago. Total new business premium, which indicates the fresh business the company has underwritten, increased 20% to 24,155 crore in March 2022 from 20,107 crore a year ago.
HDFC Life claims a market share of 9.3% in the individual segment measured by the weighted received premium (WRP). The company covered 54 million lives in FY22, registering an increase of 36% over FY21.