HDFC Life Insurance is expecting the margins to grow at the rate of 24-30 percent going forward, said Vibha Padalkar, MD and CEO of the company.
The company reported a 11.7 percent year-on-year (YoY) growth for Q1, with standalone net profit at Rs 424.62 crore, driven by growth in new business premiums. New business margins increased to 29.8 percent in the quarter against 24.2 percent a year ago.
“Some of our channels grew very well. Holistically our growth was very good and on several cylinders. That is what makes us fairly happy that the growth was not on the back of only one channel,” said Padalkar in an interview with CNBC-TV18.
In terms of value of new business (VNB), she said, “We are quite happy with the traction that we have seen in value of new business... so we ended at Rs 509 crore of VNB on the back of 104 percent growth.”
On margins, Padalkar said, “Q1 of last year was 24.2 percent and then this traction of over 500 basis points (bps) that you see. What you see in Q1 is on the back of much higher levels of all three whether it is non-par savings, protection as well as annuity but as unit-linked as well as participating also gain traction, you should see it normalised but certainly much higher than where we ended last year." “On one hand, you have 29 percent, on the other hand, you have 24 percent. So somewhere in between."