Mumbai: Private general insurer HDFC Life Tuesday reported 66.42 percent growth in net profit at Rs 451 crore in 2012-13, driven by healthy expansion in new business premium and other fronts.
In 2011-12, HDFC Life's net profit stood at Rs 271 crore.
"FY13 was one more year of the company consistently outperforming the industry growth rates in new business premium, reducing its operating expenses ratio, growing both individual and group premium, increasing renewals and improving new business margins.
"Along with growth in our business, we will continue to work towards strengthening our risk management practises," HDFC Life Managing Director and CEO Amitabh Chaudhry told reporters here.
This year (FY14) will be tough due to political uncertainties, elections and product-related guidelines, among other issues, but the company will continue to post double digit growth, he said. "However, it will be difficult to maintain a growth similar to this year (FY13)."
On IPO, Chaudhry said the company will see how this year goes and will take a decision on the issue when the stock market stabilises.
The company will move forward on customer verification from this year and unless a policy has been verified within a stipulated period it might be cancelled, he said.
The company recorded 16 percent growth in new business premium income (individual business) to Rs 3,113 crore in FY13 from Rs 2,695 crore in 2011-12.
It witnessed 9 percent growth in renewal premium income (individual business) to Rs 6,886 crore in the just-concluded fiscal from Rs 6,345 crore in 2011-12.
The private insurer's total premium income saw an expansion of 11 percent to Rs 11,323 crore during FY13 from Rs 10,202 crore in 2011-12.
The company garnered a market share of 17.5 percent in individual business (private industry) compared to 15.5 percent in FY12. Its Assets Under Management grew 24 percent to Rs 40,108 crore from Rs 32,254 crore in FY12.
ULIPs contributed 61 percent and conventional business formed 39 percent of the APE (annual premium equivalent) in the individual business, the company said.
HDFC Life achieved a decline in expense ratio to 10.8 percent in FY13 from 11.5 in the previous fiscal. It has a diversified distribution mix with bancassurance channel contributing 72 percent, agency channel (16 percent) and the remaining 12 percent coming from broker, direct and online channels.
"Despite a tough macro-economic and regulatory environment, we have continued to both grow our operations and invested for a sustainable future without a corresponding increase in operating expenses. The organisation is prepared for a smooth transition to the new product regime in 2013-14," HDFC Life Executive Director and CFO Vibha Padalkar said.