HDFC Life Insurance reported a 12.4 per cent increase in its net profit to Rs 357.52 crore in the fourth quarter of fiscal 2021-22 compared to Rs 317.94 crore in the same period in the previous fiscal.
The private sector life insurer’s net premium income grew by 11.4 per cent to Rs 14,289.66 crore in the quarter ended March 31, 2022, from Rs 12,868.01 crore a year ago.
The net benefits paid was up 9.1 per cent year-on-year at Rs 9,643.46 crore in the fourth quarter of the fiscal. The insurer settled close to 3.9 lakh claims last fiscal.
However, for the full fiscal 2021-22, its net profit fell by 11.2 per cent to Rs 1,207.69 crore from Rs 1,360.1 crore in 2020-21.
The value of new business grew 22 per cent to Rs 2,675 crore in 2021-22, from Rs 2,185 crore a year ago.
Vibha Padalkar, Managing Director and CEO, HDFC Life Insurance said, “We clocked a growth of 16 per cent in individual WRP in 2021-22, with a market share of 14.8 per cent and 9.3 per cent in the private and overall sector, respectively.”
To pay Rs 1.7 per share
The board of the insurer has recommended a dividend of Rs 1.70 per share.
Padalkar said this translates to a payout of about 30 per cent of the company’s net profit, in line with the dividend payout ratio of 2020-21 and earlier.
“Solvency as on March 31, 2022, stood at 176 per cent, post the cash payout of Rs 726 crore to Exide Industries, as part-consideration for the acquisition of Exide Life. In order to further strengthen solvency to fuel growth, we will continue evaluating raising capital through a mix of equity and debt,” she said.
The insurer had a solvency ratio of 176 per cent as on March 31, 2022, compared to 201 per cent a year ago.