Standard Life has appointed DSP Merrill Lynch as the lead banker to manage the share sale. Earlier, BNP Paribas Cardif sold 9.2 per cent in SBI Life for Rs 4,751 crore. It was one of the largest insurance deals in the country since 2016, when the first insurance firm got listed.
In Q4, the company’s total income increased to Rs 14,374.56 crore during the quarter, from Rs 8,134.61 crore a year ago. Moreover, its embedded value (EV) increased 20 per cent to Rs 18,301 crore at the end of March. Value of new business (VNB) rose 20 per cent to Rs 1,537 crore, against Rs 1,282 crore in the last fiscal year.
VNB is used to measure profitability of the new business written in a period. It is the current value of all future profits to shareholders measured at the time of writing of the new business contract.
The life insurer’s new business margin improved significantly in FY19 to 24.6 per cent, from 23.2 per cent in FY18. Shares of HDFC Life on Thursday ended 3.2 per cent higher at Rs 417. The share sale announcement was made after market hours.