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Private life insurer HDFC Life Insurance Company Ltd on Friday said it closed the nine month period ended December 31, 2021 with a lower net profit of about Rs 850 crore on an increased premium income of about Rs 31,106 crore.

The company also said its Board approved the amalgamation of its wholly-owned subsidiary Exide Life Insurance Company Ltd with itself and the legal formalities for this have begun.

In a regulatory filing, HDFC Life said it closed the nine month period ending December 31, with a net profit of about Rs 850 crore down from Rs 1,042 crore logged during the previous year corresponding period, primarily due to elevated claims during the pandemic and reserving for excess mortality.

During the period under review, HDFC Life had earned net premium income of about Rs 31,106 crore up from about Rs 25,254 crore earned during the corresponding period the previous year.

The company had paid a sum of about Rs 22,220 crore as benefits to its policyholders up from Rs 13,737 crore paid the previous year same period.

Last year, HDFC Life had announced acquisition of Exide Life Insurance Company for Rs 6,687 crore and got the necessary approvals.

Exide Life Insurance became a fully owned subsidiary of HDFC Life effective from January 1, 2022, said Vibha Padalkar, Managing Director & CEO, HDFC Life.

According to her, the integration process is underway and acquired business will be absorbed seamlessly by HDFC Life over the next 18-24 months.