HDFC Life Insurance Company has clocked a 15 per cent year-on-year (Y-o-Y) growth in profit before tax at Rs 1,277 crore for the financial year ended March 2019. The private life insurer had posted profit before tax of Rs 1,109 crore in the last fiscal, HDFC Life Insurance said in a statement.
The life insurer earned a total premium of Rs 29,186 crore in 2018-19, compared to Rs 23,564 crore in the last year, registering a growth of 24 per cent.
The company's total income increased to Rs 38,435.51 crore during FY19, from Rs 32,234.06 crore a year ago. Assets under management (AUM) stood at Rs 1,25,552 crore as of March 31 showing a strong 18 per cent growth from last fiscal.
On quarterly basis, the company reported a 5 per cent y-o-y rise in net profit to Rs 364.01 crore for the fourth quarter ended March 31, 2019. The total income rose to Rs 14,374.56 crore from Rs 8,134.61 crore a year ago.
Commenting on the financial performance, HDFC Life Insurance Company MD and CEO Vibha Padalkar said, "We continue to record above industry level growth and maintain our leadership position on profitability. Our continued focus on diversifying our distribution mix and maintaining a balanced product mix is underpinned by the growth of our proprietary channels and our dominant presence across all product segments."
"In line with our stated strategy, we continue to focus on profitable growth and providing the best value proposition to our customers, partners and shareholders," she added.
The Gross premium of new business of the company rose by 36 per cent to Rs 7,327 crore as on March 31, 2019, versus Rs 5,406 crore in 2017-18. However, the solvency ratio declined marginally to 188 in FY19 against 192 last year.
The value of new business (VNB) stood at Rs 1,537 crore for 2018-19, up by 20 per cent over the previous financial year. VNB is used to measure the profitability of the new business written in a period.
The company's embedded value (EV) rose 20 per cent to Rs 18,301 crore at the end of March 2019. It is sum of the company's net worth and the present value of all future profits to shareholders from the existing book of the company, including new business written in the year.
HDFC Life Insurance Company (formerly HDFC Standard Life Insurance Company) is a joint venture between HDFC and Standard Life Aberdeen, a global investment company.
HDFC Life Insurance Company shares closed at Rs 399.35, down 0.04 per cent, on the Bombay Stock Exchange on Friday.
Edited by Chitranjan Kumar
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