JOIN USHDFC Life, on Wednesday, announced a maiden profit of Rs 271 crore in 2011-12 with a record growth in total premium led by growth in renewal and group premium income.
During the year under review, the company recorded a 13 per cent growth in total premium to Rs 10,202 crore from Rs 9,004 crore in 2010-11. However, the company’s new premium income at Rs 3,857 crore in 2011-12 was 5.46 per cent lower than Rs 4,080 crore in the previous year.
HDFC LIfe MD & CEO Amitabh Chaudhry said, “The back book has started generating sufficient profits to offset the new business strain incurred on writing of new policies.” The company has also reduced the operating expense ratio over the last 3 years, he said.
The renewal premium income during the period grew 29 per cent to Rs 6,345 crore from Rs 4,924 crore in 2010-11.
It also garnered a market share of 15.5 per cent, a gain of 260 basis points in 2011-12 in individual business (private sector) in terms of Weighted Received Premia (WRP).