HDFC Life Insurance Company reported 6.1 per cent increase in consolidated net profit at Rs 327.83 crore for September quarter 2020-21. It also reported a profit after tax (PAT) of Rs 777 crore in the first half of 2020-21, a growth of 6 per cent, stated MD and CEO Vibha Padalkar of HDFC Life. She also revealed that COVID-19 claims have witnessed a rise and non-COVID-19 claims have seen a decline.
Padalkar said, “Even though COVID-19 claims are increasing month on month, the total number of claims is well within our estimates. Non-COVID-19 claims have been lower and we have been monitoring any delay in claim reporting as well.”
She added the company has received 418 claims related to COVID-19, which is worth Rs 22 crore. But most of them are still under scrutiny, Padalkar asserted.
The insurer has set aside Rs 41 crore as a reserve for COVID-19 claims. “The COVID-19 reserve of Rs 41 crore created by us in April 2020 remains adequate. We are monitoring claim trends closely and we will review the adequacy of this in H2.”
Due to the new circular issued last week, the insurer is keeping a close watch on the policy buyer's behaviour. “So, we will have to see if people want to buy Corona cover and then port it to regular cover, we need to see that.”
She stated that her company has not halted any new product launches due to COVID-19. “We do believe that life has to go on. So, we have not halted any product launches. And our robust results show that we have put nothing on hold.”
The life insurer had posted a net profit of Rs 308.98 crore in the year-ago period. The total income of the insurer jumped nearly 90 per cent to Rs 16,426.03 crore as against Rs 8,661.33 crore in the second quarter of 2019-20, HDFC Life said in a regulatory filing. In the case of new premium income during the quarter grew 35 per cent to Rs 10,056.71 crore. Income from investment jumped multi-fold to Rs 6,318.81 crore from Rs 1,135.12 crore. The company's asset under management as on September 30, 2020 stood at Rs 1.5 lakh crore.