HDFC Life Insurance Co.’s gross premiums rose, driven by strong renewal premium growth and improvement in persistency.
Gross premiums grew 20% year-on-year to Rs 9,628 crore in the quarter ended December, the private insurer said in its exchange filing.
An improvement in persistency—or customer retention—also helped. The metric rose by 200 basis points year-on-year to 89% during the nine months ended December.
Net profit rose 6% over a year ago to Rs 265 crore. The consensus of analysts’ estimates compiled by Bloomberg pegged profit at Rs 441 crore. Profit after tax stood at Rs 250 crore during the year-ago period.
Value of new business margin, however, declined to 25.6%. The metric stood at 26.6% during the nine months ended December 2019.
Shares of HDFC Standard Life Insurance closed 2% lower ahead of the earnings compared with a 1.5% decline in the benchmark Nifty 50.
Source: Google | Insurance News