Insurance provider HDFC Life reported a robust growth of 17 per cent in terms of Individual Weighted Received Premium (WRP) during FY21, on a base of 19 per cent growth in FY20. The insurer reported a profit after tax (PAT) of 5 per cent from Rs 1,295 crore in FY 2020 to Rs 1,360 crore in FY 2021.
According to the company, it sold about 9.8 lakh new individual policies registering a YoY (year-on-year) growth of 10 per cent. Meanwhile, the insurer reported 17 per cent growth in new business (individual and group) at Rs 20,107 crore in FY 2021 from Rs 17,239 crore in FY 2020. The total premium of the company grew by 18 per cent. It stood at Rs 38,583 crore in FY 2021.
Vibha Padalkar, MD & CEO said, “In what has been uncertain times for humanity, we remain sensitive about the health impact and loss of lives due to the pandemic and continue to prioritise employee, customer and partner safety.”
She added, “Over the course of the year, we have settled over 2.9 lakh death claims resulting in payouts in excess of Rs 3,000 crore. Based on our actual experience in FY21 and after factoring in aspects such as latest mortality trends across business and customer segments and geographic spread of Covid 2.0, we have provided for a Covid reserve of Rs 165 crore for FY22. We will continue to review the adequacy of this reserve through the course of FY22. Despite logistical challenges through the year, we have insured close to 40 million lives in FY21.”
Padalkar added that the market share in terms of Individual WRP has increased by 130 basis points from 14.2 per cent in FY20 to 15.5 per cent in FY21.
The asset under management of the insurer stands at Rs 1.74 lakh crore in FY 2021. The value of the new business was worth Rs 2,185 crore, up by 14 per cent.
The company's diversified distribution comprises a wide spectrum of over 300 partners, including more than 50 new ecosystem partners. This is supplemented by 390 branches across the country.
Padalkar stated, “Given the resurgence of Covid and the looming uncertainty around economic and market momentum, we will continue to maintain a cautiously optimistic stance for FY22 and evaluate our approach dynamically. We will strive for consistent new business growth and an upward trajectory on New Business Margins, whilst adhering to a conservative risk management approach.”
Established in 2000, HDFC Life is a life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as Protection, Pension, Savings, Investment, Annuity and Health.
As on March 31, 2021, the Company had 36 individual and 12 group products in its portfolio, along with 7 optional rider benefits, catering to a diverse range of customer needs.