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HDFC Life posts maiden profit in FY12

Private insurer HDFC Life today posted its maiden profit of Rs 271 crore in FY12, mainly due to focus on cost containing and efforts on conservation.

'The back book has started generating sufficient profits to offset the new business strain incurred on writing of new policies. This along with our consistent focus on cost monitoring and containment and focused efforts on conservation ratio have helped reduced the operating expense ratio over the last three years,' HDFC Life Managing Director and CEO Amitabh Chaudhry told reporters here.

Going by the trend, the company is expecting a double digit growth in this fiscal, he added.

'We are investing Rs 100 crore on technology over the next five years that will enhance our customer centric approach,' he said.

HDFC Life, which has over 15,000 employees, is looking to 10 per cent workforce this fiscal, Chaudhry said.

The private insurer has three products in pipeline in the savings and health category, which will be a mix of both traditional and unit-linked, he said.

The company saw a growth of 13 per cent in total premium collection at Rs 10,202 crore during 2011-12, compared with Rs 9,004 crore in FY11.

Renewal premium income, individual business, grew by 29 per cent to Rs 6,345 crore in FY12 from Rs 4,924 crore in the previous fiscal.

The company, which is ranked at number two amongst private life insurance companies, gained its market share by 260 basis points to 15.5 per cent in FY12.

The private life insurer achieved 96.17 per cent with the total individual death claims paid in FY 2011-12 was Rs 96.97 crore.
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