The life insurer said that its claims soared three-to-four times during the June quarter as against the peak claims volumes in the first wave of the Covid-19 pandemic. The second wave of the pandemic was devastating for India as deaths and daily cases both soared to record highs.
The life insurer paid over 70,000 claims in the first quarter of the current financial year with gross and net claims amounting to Rs 1,598 crore and Rs 956 crore, respectively. “Based on our current claims experience, we have set up an additional reserve of Rs 700 crore to service the claims intimations expected to be received in Q2 and Q3,” the life insurer said.
The new business premium in the quarter surged 44 per cent on-year to Rs 3,767 crore, while total premium rose 31 per cent to Rs 7,656 crore. HDFC Life’s assets under management saw a healthy growth of 30 per cent in the June quarter to Rs 1.81 lakh crore.
In terms of value of new business, the metric saw a 40 per cent surge in the reported quarter on a year-on-year basis to Rs 408 crore.
“Against the backdrop of disruption in business on account of localised lockdowns, and surge in cases during the second wave, we recorded a 22% growth and market share of 17.8% in private sector in terms of individual WRP,” said Vibha Padalkar, managing director and chief executive officer of the company.
On the operating front, new business margins in the quarter saw strong 190 basis points year-on-year expansion to 26.2 per cent. Pre-excess mortality reserve operating return on enterprise value rose to 16.5 per cent as against 15.8 per cent a quarter ago.
“With signs of the second wave receding over the past month, we have seen a gradual pick-up in economic activity across parts of the country. We see greater customer engagement and an increased interest in life insurance policies,” Padalkar said.
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