India’s largest life insurer by market capitalisation, HDFC Standard Life Insurance Company Ltd., expects returns of non-participating savings policies to shrink if interest rates are increased.
There could be some impact of interest rates on non-participating savings products, Vibha Padalkar, executive director and chief financial officer, told BloombergQuint in an interview. The embedded value of the company, however, is not sensitive to interest rate movements due to a balanced product mix, she added.
Non-participating savings products make up 9 percent of the life insurer’s portfolio based on individual annualised premium equivalent. The company’s unit-liked portfolio, which formed 57 percent of its portfolio, will not see much of a change as it is totally dependent on the policyholders’ portfolio, Padalkar said.