MUMBAI: The third largest private sector life insurer HDFC Life has reported a 15 per cent growth in net income at Rs 433 crore in the September quarter, driven by healthy growth in premium income, and investment income.
The insurer's net premium income for the September quarter rose 12.3 per cent to Rs 16,570 crore, the company said in an exchange filing.
The HDFC Group company earned Rs 3,253 crore in first-year premium during the quarter, which was a full 27 per cent more than the year-ago period. It also mopped up Rs 8,831 crore in renewal premium, up 13 per cent over the same quarter of the previous year.
Its assets under management (AUM) stood at Rs 3.25 trillion, an increase of 23 per cent in the first half of the current financial year.
The value of new business grew by 17.4 per cent to Rs 1,656 crore, reflecting a focus on writing profitable business, as per a company statement on Tuesday.
However, analysts say that the insurance industry may not repeat the show next quarter after the regulatory mandate of offering more to policyholders in case they choose to port out or cancel the policy in surrender value which came into effect from October 1.
Earlier insurers were not offering anything to a policyholder if they surrendered the policy even after paying the second-year premium. Now they have to compensate up to 85 per cent of the premium value on surrender even in the 13th month.
The industry reckons this will shave at least 100 bps off their profit margins.