Directors’ Report: TO THE MEMBERS OF HDFC STANDARD LIFE INSURANCE COMPANY LIMITED Your Directors are pleased to present the Twelfth Annual Report of HDFC Standard Life Insurance Company Limited (‘Company’) together with the audited Financial Statements of the Company for the Financial Year ended March 31, 2012. Business Review & Outlook The external market environment was extremely tough during the year under review. Interest rate worries, rising inflation, choppy stock markets along with debt crisis in some of the global economies has had a downward spiral effect on the life insurance industry. The impact of various regulatory changes that were announced by Insurance Regulatory & Development Authority (IRDA) in September 2010, though good for the long term, did have a distinct negative short term impact. The industry witnessed a de-growth in new business premia, whereas renewal premia grew, indicating that at a time when there was risk aversion among savers and the market sentiment was negative, policyholders continued to have faith in life insurance products that had been bought by them. The industry (including public sector insurer) witnessed de-growth of almost 3% on Overall (Individual & Group) Weighted Received Premium (WRP) basis during the financial year under review. On an Individual WRP basis, Life insurance industry registered de-growth of 5% in FY2011-12, led by private industry de-growth amidst regulatory interventions. Your Company was amongst the select group of private life insurers that showed positive growth on new business individual WRP in the second half of FY2011-12. The Company registered a growth of 13% in total premium. First Year regular premium registered a de-growth of 7%, while individual renewal premium |