HDFC Life Insurance posted a 2.3 percent year-on-year (YoY) rise in its March quarter (Q4) consolidated net profit at Rs 319.06 crore.
During the quarter, the life insurer had collected new premiums of Rs 6,560 crore as against Rs 5,089 crore in the year-ago period.
HDFC Life sold about 9.8 lakh new individual policies during the quarter under review, thereby registering a YoY growth of 10 percent in FY21.
The Value of New Business (VNB) increased by 14 percent YoY to Rs 2,185 crore. This translated to New Business Margin of 26.1 percent.
The board has recommended a final dividend of Rs 2.02 per equity share of face value of Rs 10 each for FY21. This is subject to approval at the company's annual general meeting.
Vibha Padalkar, MD & CEO, HDFC Life 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. We are working closely with all our partners and re-insurers to ensure timely service and claim resolution."
Padalkar added that 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-19 reserve of Rs 165 crore for FY22.
In FY21, the individual APE saw a 16 percent YoY to Rs 7,121 crore. Here, Ulips constituted 24 percent, par was 34 percent, non-par savings was 31 percent, term & health was 7 percent and annuity was 5 percent.
Padalkar said that Ulips would continue to be 20-25 percent of the individual APE business.
Annualised premium equivalent is 100 percent of regular premiums and 10 percent of single premiums.
In FY21, HDFC Life has settled Rs 145 crore (net of reinsurance) of 2,324 COVID-19 death claims. The total death claims payouts in FY21 by the insurer was in excess of Rs 3,000 crore.
Padalkar explained that in FY21, there were 1,700 policies issued to doctors with sum assured of Rs 2,000 crore. This means that sum insured per person is in excess of Rs 1 crore per person. Doctors are considered the highest risk professionals amidst the Coronavirus outbreak.
With respect to offering covers to frontline workers like doctors handling COVID-19 patients, she added that the company will cover individuals based on the risks. She reiterated that there is no policy to deny insurance to such persons.
HDFC Life's Indian embedded value stood at Rs 26,617 crore in FY21, seeing a YoY growth of 29 percent. Assets under management saw a 37 percent YoY growth to Rs 1,73,839 crore.