Private sector insurer HDFC Life Insurance on April 18 reported a net profit of Rs 411 crore for the January-March quarter of financial year (FY) 2023-24, up by 14.8 percent from Rs 358 crore recorded in the year-ago period. The numbers beat the market expectations which expected 6.1 percent growth in profit to Rs 382.1 crore.
The net premium income of the insurer came in at Rs 20,488 crore, up 5.4 percent from Rs 19,426 crore in the year-ago quarter.
The solvency ratio of the insurer stood at 187 percent, up from 203 percent a year ago.
The company's annualised premium equivalent (APE), which is a measure of new business written by a life insurance company, fell by 8 percent, against market expectations which expected APE to fall by 7 percent. The APE stood at Rs 4727 crore for the quarter compared to Rs 5162 a year ago.
Value of new business (VNB) margin, which is the present value of future profits associated with new business written during the quarter, fell by 18.3 percent, against market estimates of 15 percent fall. VNB margin for the quarter stood at Rs 1234 crore. The company has also proposed a dividend of Rs 2 per share.
Following the earnings, shares of HDFC Life were trading nearly 0.95 percent up at Rs 610.20 apiece on BSE at 2.36 pm.
The company also informed that veteran banker Deepak Parekh has stepped down from the role of the Chairman and Non-Executive Director. The company also said that they have appointed Keki M Mistry as the Chairman of the Board.
Additionally, the insurer said that VK Viswanathan and Prasad Chandran shall cease to be independent directors after completing their two consecutive terms of five years each on April 24, 2024. And the company also appointed Venkatraman Srinivasan as an Independent Director.
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