Registered a growth of 7% in total premium, 17% in renewal premium
-
Sustained its position amongst the top 3 private players in individual and
group business
-
Recorded market share of 13.8% in individual business (private industry), 5.2%
(total industry)
HDFC
Life, India’s leading long term private life insurance solutions provider has
registered a profit of Rs 725.3 crore in 2013-14. The company recorded 7%
growth in total premium, primarily driven by 17% growth in renewal premium and
30% growth in group business. The company has introduced new processes to
strengthen the quality of business which impacted growth in individual first
year premium.
Key
Financial and Operational Highlights:
Total premium:
Growth
of 7% to Rs 12,063 crore from Rs 11,323 crore in 2012-13 largely due to healthy
growth in renewal premium and group business;
First year premium (Individual business):
Introduction
of stringent measures to strengthen the quality of business resulted in a
deceleration in business through Bancassurance channel and we closed the year
with Rs 2,356 crore which is a de-growth of 24% vs previous year;
Renewal premium:
17%
increase to Rs 8,024 crore from Rs. 6,887 crore in 2012-13. Consistent renewal
growth over the years, aided by a number of customer education initiatives,
reflects the quality of business underwritten by HDFC Life;
Market share:
Continue to be amongst the top 3 private
players in individual and group business. Ended the year with a market share of
13.8% in Individual business (private industry) in terms of Weighted Received
Premium (WRP); a rebound in Q4 with market share of 15.6%;
Operating expenses ratio:
Expense
ratio maintained at 10.7% and is one of the best in the private industry. This
is despite making significant investments in new distribution channels,
technology and products;
Conservation ratio:
Persistent efforts in customer education,
customer interaction avenues and a heightened focus on “need-based” selling
helped in maintaining the conservation ratio at a healthy level of 79% (PY
79%);
Assets Under Management:
25%
growth (PY 24%) to Rs 50,258 crore as compared to Rs 40,108 crore in the
previous year;
Balanced product portfolio:
Maintained
a balanced product mix with ULIPs contributing 49% and Conventional business
forming 51% of the APE (Annual Premium Equivalent) in the Individual business.
Within the the Conventional business segment, the Company’s strategy of
increasing its focus on Non Participating business worked well and it
contributed to 15% of overall individual
APE (PY 3% ) ;
Diversified distribution mix:
Efforts to fortify and diversify channel mix
have started yielding results with channels other than bancassurance
contributing 30% (PY 28%);
Claim settlement ratio:
Ranked
1st in group claim settlement ratio (99.8%) and 2nd in Individual claim
settlement ratio (95.7%) amongst private players (as per the data published by
IRDA for 2012-13)
Mr. Amitabh Chaudhry, MD& CEO, HDFC
Life, said, “Our focus on ‘growth with quality’ continued in 2013-14. As a
trusted name in the industry, we felt it was our responsibility to lead by
example and set standards on the ‘right behavior’ to provide our customers the
best value for money. We have redefined our values in more actionable terms
with the onus on every employee to look at his/her decisions through the prism
of our values. We have created a 360 degree framework that embeds the values in
every action that we take in our company that impacts our stakeholders. We have
made significant inroads as part of our large technology enabled transformation
program with focus on social media, mobile, data analytics, and cloud to drive
business competitiveness. I am very
proud that within two years, we have established ourselves as the leading
online life insurer with a strong social media presence. Going forward, apart
from augmenting and nurturing our human capital, we will retain our focus on
new growth engines.”
Mr.
Vibha Padalkar, ED & CFO, HDFC Life said, “We are happy to
share that despite a tough macro-economic and regulatory environment, our total
revenue less payouts to policyholders continued to be strong at Rs 7,310 crore
(PY Rs 7,361 crore). We have shown a remarkable improvement in having achieved
a post overrun new business margin of 16.1% (PY 13.2%). Our embedded value has
shown a healthy growth of 19.1% to Rs 6,992 crore as on March 31, 2014 compared
to Rs 5,872 crore the previous year. Moreover, we have seamlessly transitioned
to the new product regime during the year and we are geared up to launch
several path breaking products to meet diverse customer needs.”
For more details
Hetal Thakkar
Management
Associate
hetal.thakkar@hkstrategies.com
D
: +91 (0) 22 4066 1755
M
: +91 (0) 75060 96072
F
: +91 (0) 22 4066 1792
IPAN
Hill+Knowlton Strategies
http://www.hkstrategies.in
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