Page 14 - Insurance Times September 2021

Private Life Insurance News

33% drop in net profit : Rs. 532 cr bonus declared PNB MetLife's shareholders include
MetLife International Holdings LLC.
HDFC life by PNB Metlife
(MIHL), Punjab National Bank (PNB),
HDFC Life Insurance reported a 33 per PNB MetLife India Insurance Company Jammu & Kashmir Bank, M Pallonji and
cent drop in its net profit to Rs. 302.25 has announced a bonus of Rs 532 crore Company Pvt Ltd and other private
crore for the quarter ended June 30, for the eligible policyholders of investors. MIHL and PNB are the
2021 as against Rs. 451.09 crore in the participating products during 2020-21. majority shareholders.
same period a year ago. This bonus is 7 per cent higher than
that in previous year. PNB MetLife said
The drop in profit was on the back of Life insurers NBP drops
it has beenconsistently declaring bonus
higher claims reserving towards on participating products every year 11%
heightened claims intimation expected
and 4.6 lakh customers, whose policies After witnessing a marginal year-on-
in the second and third quarter of the
are in force as of March 31, 2021, will year (YoY) rise in new business
fiscal. The private sector life insurer
be benefiting from this bonus. premiums (NBP) in June, following a dip
witnessed a steep rise in death claims,
with peak claims in the second wave Policyholder bonus is the share of in May due to the second wave of the
profits generated by the company's Covid-19 pandemic, the life insurance
at around three to four times of the
participating funds which is paid to the industry's NBP has again dropped in
peak claim volumes in the first wave.
customers at various benefit events. July.
It paid over 70,000 claims in the first
PNB MetLife's strong fund This is mainly due to the contraction in
quarter. The gross and net claims
management capabilities coupled with business seen by the state insurance
provided for amounted to Rs. 1,598
robust risk management practices behemoth - Life Insurance Corporation
crore and Rs. 956 crore respectively.
have enabled the company to reward
Based on its current claims experience, (LIC) of India.
policyholders with higher bonus
it has set up an additional reserve of payouts, the insurer said in a release. In July, life insurers - 24 in total - earned
Rs. 700 crore to service the claims an NBP of Rs 20,434.72 crore, down
Ashish Kumar Srivastava, MD & CEO,
intimations expected to be received. 11-per cent YoY from last year. While
PNB MetLife, said despite these trying
HDFC Life Insurance reported a 31 per times, the company has delivered private insurers managed to report a
cent growth in total premium to Rs. steady growth on participating 7.53-per cent increase in NBP in July
7,656 crore in the first quarter of the products over the years. over last year, LIC saw its NBP contract
fiscal from Rs. 5,863 crore a year ago. almost 21-per cent YoY to Rs 12,030.93
"The declaration of this Rs 532 crore
Total APE surged by 30 per cent to Rs. bonus reinforces our commitment to crore.
1,561 crore in the first quarter of the help our customers reach their financial In June, LIC reported an NBP of Rs
fiscal as against Rs. 1,198 crore a year aspirations through every stage of 21,796. 28 crore, down 4.13 per cent
ago. Life," he said. on a YoY basis. Sequentially, i.e., on a

14 The Insurance Times, September 2021