HDFC Standard Life Insurance Company Ltd. reported the highest new business margin among listed private peers on strong performance of its protection products that ensure income to a policyholder’s family in the event of death or illness due to a certain type of adversity.
The new business margin, which is a measure of its profitability, expanded 370 basis points to 24.2 percent year-on-year in the April to June quarter. (100 basis points = one percentage point).
“The real jump was on the protection side of the business,” said Amitabh Chaudhry, managing director and chief executive officer at India’s largest insurer by market . “We want to increase our protection share as much as possible as that is good for us and good for our customers.”
The non-participating protection business share increased to 18.2 percent in the quarter ended June 30, compared with 11.1 percent of annualised premium equivalent in the year-ago period.
“On the group side of business we did extremely well,” Chaudhry said. The company’s group credit protect product grew over 55 percent year-on-year, he said.
More than a quarter of new business came from the group protection portfolio, mainly driven by sales of credit protect policy—which ensures repayment of credit if the borrower dies. The individual segment, at 2 percent of the total new business premium, was led by sales through digital channels.
Other Highlights:
- Total premium rose 37 percent to Rs 5,057 crore.
- New business premium grew 62 percent to Rs 2,680 crore.
- Net profit grew 20 percent to Rs 380 crore.
- Income from investments fell 35 percent to Rs 1797 crore.
- Indian embedded rose 19 percent to Rs 15,690 crore.
- 13th month persistency improved to 87 percent versus 85 percent.
- 61st month persistency declined to 50 percent versus 57 percent.
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