HDFC Life Mumbai: HDFC Life Insurance Company Ltd reported a 15 percent increase in its net profit to Rs 315.22 crore for the quarter ended December 31, 2022, riding on strong new business growth.
The private sector insurer's profit stood at Rs 274 crore in the year-ago period, it said in a regulatory filing.
Total income increased to Rs 19,693 crore in the latest December quarter from Rs 14,222 crore in October-December 2021.
In the third quarter of FY23, the private-sector life insurer’s new business value stood at Rs 875 crore while it was Rs 2163 crore for the nine-month period ended December 31, 2022.
The value of new business (VNB) is the key profitability metrics for insurance companies.
New business margin (NBM) indicates how much a company can gain out of each policy written.
"We have doubled our VNB in the past and we would like it to be in 18-20 percent growth range," the company's chief financial officer Niraj Shah said.
First-year premiums grew by a strong 29 percent to Rs 2,724.87 crore for the quarter compared to Rs 2,115.97 crore in the corresponding period last year.
The retail business grew 17 percent, while on the basis of annualised premium equivalent, the growth was 25.5 percent year-on-year.
The company is targeting Tier 2 and 3 centres for growth, Shah said.
The insurer’s NBM for Q3FY23 was 26.8 percent, while for the nine-month period it was 26.5 percent.
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