HDFC Life Q3 PAT up 14.77% at Rs 207.32 crore

MUMBAI: HDFC Life today reported a 14.77 per cent growth in profit after tax (PAT) at Rs 207.32 crore for the quarter ending December 31, compared to the same period last year.

The private insurer’s PAT stood at Rs 180.63 crore in the same quarter last year, it said in its BSE filing.

This is the company’s first result after listing in the capital markets in November last year.

“We had a robust quarter and continued to deliver a consistent performance across all metrics. Our balanced product mix, diversified distribution network and customer-centric approach has helped deliver profitable growth and shareholder value,” HDFC Life managing director and CEO Amitabh Chaudhry said.

In line with the company’s strategy, it will continue to invest in leveraging technology and re-imagine the life insurance business, he added.

The insurer’s net premium for the quarter grew to Rs 5,419.99 crore during the quarter compared to Rs 4,534.79 crore in the same period of last financial year.

The renewal premium also went up to Rs 2,805.24 crore from Rs 2,572.85 crore.

Meanwhile, PAT for the nine months witnessed stable growth of 18 per cent at Rs 760 crore.

The company posted growth of 20 per cent to Rs 14,610 crore, aided by strong new business growth of 33 per cent and healthy renewal business growth of nine per cent.

HDFC Life’s assets under management grew by 27 per cent to Rs 1,04,430 crore, with underlying debt:equity mix of 57:43. The solvency ratio was at 191 per cent against the regulatory requirement of 150 per cent.

Buy ICICI Prudential Life Insurance Company, target Rs 440: Kunal Bothra

Independent analyst Kunal Bothra has a buy call on ICICI Prudential Life Insurance Company with a target price of Rs 440.

The current market price of ICICI Prudential Life Insurance Company is Rs 419.05.

Time period given by the analyst is ‘Intra Day’ when ICICI Prudential Life Insurance Company price can reach defined target.

Kunal Bothra recommended to keep a stop loss at Rs 405. ICICI Prudential Life Insurance Company, incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 60,153.28 Crore) operating in Finance sector.

The company’s top management includes Mr.Dilip Karnik, Mr.M S Ramachandran, Mr.N S Kannan, Mr.Puneet Nanda, Mr.R K Nair, Mr.Raghunath Hariharan, Mr.Sandeep Bakhshi, Mr.Sandeep Batra, Mr.V Sridar, Mr.Vinod Kumar Dhall, Ms.Chanda D Kochhar, Ms.Rama Bijapurkar.

Budget 2018: Why government may increase section 80C limit

In the upcoming budget, the government may announce certain measures that can increase your take-home pay which will allow you to save more.

Although there are several measures that the government may introduce, one way of doing this could be increasing the section 80C limit of the Income-tax Act, 1961.

Out of the various deductions available under the Act, section 80C is primarily an investment-led tax avenue that helps in reducing one’s tax liability. Further, it helps in increasing savings of individuals that can help them meet their financial goals. “We expect Budget 2018 to increase the Section 80C investment limit for tax saving from the current Rs 1.5 lakh to Rs 2 lakh,” says Sonu Iyer, tax partner and people advisory services leader, EY. ” The increase in the limit is warranted to account for inflation. These increases would entail loss of revenue for the exchequer but they were also needed to keep the limits in line with inflation, she explained.

In Budget 2018, section 80C could see an increase in its limit from the existing Rs 1.5 lakh a year to Rs 2 lakh or possibly even higher. However, the increase may be restricted to one or two specific tax-saving products within the section 80C basket. The exemption limit was last raised in the 2014-15 budget where it was increased from Rs 1 lakh a year to Rs 1.5 lakh.

Axis looks to foray into life insurance business

NEW DELHI: Axis BankBSE 3.41 % is looking to acquire a life insurance business, said people with knowledge of the development. The bank’s executive committee had approved the move in the December quarter, they told ET. Among possible targets are IDBI Federal Life Insurance and Tata AIA, they said.

“The bank has appointed a leading USbased investment bank to scout for a suitable midsize player that can be acquired,” said one of the persons. “It has already submitted a bid for IDBI Federal Life Insurance, which is on the block.”

With a strong retail franchise and bancassurance experience with partner Max Life Insurance, in which it has a 4.99% stake, Axis Bank is well placed to explore insurance opportunities, another person said. Axis Bank raised about Rs 11,700 crore from Bain Capital through a sale of shares and warrants in November last year. However, any acquisition will be through equity, said the persons cited above.

Axis Bank’s decision was triggered by Max’s promoters seeking to exit life insurance through a merger with HDFC Life Insurance, although this move later collapsed. However, after Axis Bank bid for IDBI Federal Life Insurance, preliminary talks did take place with Max.