HDFC Life Insurance shares hit a fresh 52-week high before turning negative on Wednesday, a day after the private sector life insurer reported its earnings for the April-June period. In a regulatory filing during market hours on Tuesday, the private sector insurer said its net profit stood at Rs 424.62 crore in the quarter ended June 30, an increase of 11.69 per cent compared to its net profit in the corresponding period a year ago. The HDFC Life share price rose as much as 4.78 per cent in intraday trade to clock a fresh 52-week high of Rs 532.90 on the BSE on Wednesday, before erasing all of the day's gains amid a broad-based selloff in the markets.
HDFC Life Insurance's net premium income rose 28.99 per cent year on year to Rs 6,451.16 crore for the three-month period ended June 30, according to its regulatory filing.
The company said its net commission stood at Rs 322.23 crore for the three-month period, up 62.59 per cent on a year-on-year basis.
HDFC Life Insurance's persistence ratio - a key gauge of an insurance company's profitability - improved to 88.8 per cent in the 13th month category, from 85 per cent a year ago. Persistence ratio is measured in terms of number of policies and premiums underwritten.
The insurance company said that its 37th, 49th and 61st month persistence ratios improved to 71.4 per cent, 67.3 per cent and 55.5 per cent respectively. However, its persistence ratio in the 25th month category came in at 77.6 per cent in the quarter ended June 30, as against 77.8 per cent in the corresponding three-month period a year ago.
HDFC Life Insurance shares ended 1.86 per cent lower at Rs 499.15 apiece on the BSE, underperforming the benchmark Sensex index which fell 0.36 per cent continuing its losing streak for a fifth straight session.