New Delhi: HDFC Life has reported 12 percent increase in net profit at Rs 464 crore during the first half of 2016-17 financial year. Its net profit (based on IGAAP) was at Rs 415 crore during the corresponding April-September period of 2015-16.
There was a steady growth of 16 per cent in total premium at Rs 7,649 crore for the half year ended September, aided by growth in new business premium of 29 per cent and renewal business growth of 8 per cent, HDFC Life said in a release. Company's asset under management registered a healthy growth of 18 per cent at Rs 82,661 crore with underlying debt to equity mix of 59:41, it added.
"We continue to focus on delivering steady performance along with quality growth. Our endeavor is to innovate across the value chain by leveraging technology solutions and investing in new avenues of distribution. Our efforts continue in providing customized protection and health solutions to our customers," said Amitabh Chaudhry, MD & CEO, HDFC Life.
On the merger update, the company said the board of directors of HDFC Life, Max Life Insurance Company (Max Life) and Max Financial Services and Max India Ltd at their respective meetings in August have approved entering into definitive agreements for the amalgamation of the business between themselves. The shares of HDFC Life are expected to be listed on BSE and NSE after closing of the proposed transactions and regulatory approvals.
"The company has filed the relevant application to CCI and IRDAI for their approval. We are in the process of filing application request with SEBI and shall apply for High court approval post approval from CCI, Sebi and Irdai," it said.
Further the payment by [HDFC Life/MergeCo] of a non-compete fee to the promoter group shareholders of Max Financial has been passed by a majority vote of Max Financial's public shareholders during the last quarter, which is an important step forward in the process, it said further.
"The entire process is expected to complete in 12-15 months from the date of announcement of the transaction," HDFC Life said.