Page 14 - Insurance Times August 2019

Aviva Life Insurance SBI Life Insurance shares hit record high

brings 'Aviva Income SBI Life Insurance shares hit record high of Rs 780 apiece, up 3%, on the BSE on
July 12, surpassing its previous high of Rs
Suraksha' for defence 776 touched on July 5, in the intra-day
personnel deal. Since October 3, 2017, the stock of
the insurance company was trading at its
Aviva Life Insurance has recently in-
highest level.
troduced
'Aviva In- Thus in the current financial year, SBI Life
c ome Insurance has outperformed the market
by surging 34% on strong buying from in-
Suraksha',
which is a stitutional investors. During the same pe-
riod, the benchmark index was marginally grew by 0.50%.
non-par-
ticipating As per the shareholding pattern data, institutional investors have recorded a
traditional retirement plan, designed growth in their stake in the company by 714 basis points (bps) to 25.56% in the
keeping the defence forces in mind. June quarter. They held 18.42% at the end of March 2019 quarter.
As per the insurer, the product pro- HDFC Life Insurance posts 11.7% growth in Q1 net profit
vides soldiers financial preparedness
post-retirement as well as offers an An 11.7% year-on-year (YoY) growth for the first quarter ended in June has been
additional monthly income stream. posted by HDFC Life Insurance,
along with standalone net profit at
Monthly income for 10 years for a Rs 424.62 crore, driven by new
premium paying term of 10 years business premiums growth.
(post deferment period) is also guar-
Compared to 24.2% a year ago,
anteed by the product. If the pre-
new business margins increased to
mium paying term is 12 years,
29.8% in Q1FY20. The 13th-month
monthly income is also guaranteed persistency increased to 88.8% in
for 12 years. Additionally, it has an
Q1FY20 from 85% in the year-ago
age-related, one-time benefit paid period.
with last monthly payout. The in-
surer also noted that the deferment While, the individual annualised premium equivalent (APE) increased by 64%
YoY to Rs 1,378 crore in Q1, the new business premium increased by 47% YoY
period of zero, three or five years,
to Rs 3,926 crore in the June quarter.
provides customers with the flexibil-
ity in order to align the inflow of The June quarter has witnessed a stark change in HDFC Life's product mix. Unit-
monthly guaranteed income to suit linked products mix declined to 26% of individual APE in Q1 compared to 54%
a year ago. Meanwhile, the share of non-par savings grew to 63% in Q1FY20
their life stage needs.
from 11% in Q1FY19.
"Defence personnel usually retire
Vibha Padalkar, MD & CEO said, "We have recorded stellar top-line growth, with
between 38 to 42 years of age, thus
strong traction witnessed across savings, protection and retirement solutions
lowering their primary income. We
whilst maintaining our focus on profitability. Our diversified distribution mix
propose a solution with a financial
coupled with product innovation has helped us address niche customer seg-
plan to meet life goals like child edu- ments and emerging profit pools." He added that the company has stepped up
cation and saving for children’s mar-
efforts within the protection and retirement space, which she expects would
riage, whilst they find an alternate fuel growth over market cycles.
source of employment. The premi-
Under management, the private life insurer's assets stood at Rs 1.3 lakh crore
ums paid on monthly modes making
and a debt-equity mix of 62-38 as on June 30. For the same period, almost 96%
it easier for them to save in small
of debt investments are in government securities (G-Sec) and AAA bonds.
instalments," said Anjali Malhotra,
Chief Customer, Marketing, Digital & Operating return of HDFC Life on embedded value (EV) stood at 19.9% in Q1
IT Officer. compared to 18.4% a year ago.

14 The Insurance Times, August 2019