Why did HDFC Life report a sharp fall in profits for the Jun-21 quarter?

HDFC Life net profits for Jun-21 quarter fell 33% on the back of higher claim pay-out and additional provisioning of Rs.700 crore. This provision was to mitigate the impact of COVID claims. In Jun-21 quarter, HDFC Life settled 70,000 claims with gross claim pay-out of Rs.1,598 crore since death claims were 3-4 times the first round of COVID. Total premiums were up 31%, new business premium up 44% and renewal premiums were up by 20%.