INSUBCONTINENT EXCLUSIVE:
December, reflecting the bottom-line impact of surging new business.
In the third quarter of the fiscal year to March, the insurer reported
net profit of Rs 250 crore, compared with Rs 245 crore in the corresponding quarter a year ago
It saw margins on the value of new business (VNB) expand to 26.6 per cent.
VNB is a key insurance industry metric that computes the present
value of expected future earnings from new policies written during a specified period
In the nine months of FY20, VNB at HDFC Life surged 45 per cent to Rs 1,407 crore.
Solvency margin at the insurer was 195 per cent in the
Ulips fell to 28 per cent from 59 per cent in the third quarter at the insurer, indicating a strategy shift
New business premium rose 22 per cent to Rs 12,150 crore at the end of December, while total premium expanded 17 per cent to Rs 22,090 crore
Individual APE (annual premium equivalent) rose 31 per cent to Rs 4,390 crore.
APE is a metric used when an insurer sells policies tied to
both single premiums and periodic annual premiums, and compares the revenue by normalising collections into the equivalent of periodic
Protection APE has grown by 32 per cent in the first nine months over the corresponding period last year to Rs 886 crore.
As on December 31,
assets under management (AUM) at the insurer amounted to Rs 1.4 lakh crore, with the debt-to-equity mix of such assets at 63:37.
About 96
per cent debt investments of HDFC Life are in G-Secs and AAA bonds
The operating return on embedded value was 19 per cent.