Indian insurer HDFC Life's profit rises, but shrinking margins slam shares
India's HDFC Life Insurance reported a near 15% rise in second-quarter profit on Tuesday, but a key margin declined, triggering the worst fall in its shares in nearly a month. Demand for market- or unit-linked insurance plans (ULIPs) has been strong in recent quarters, driven by India's strong equity market. However, a rise in sales of ULIPs, which have a lower profit margin, leads to the contraction of value of new business margins for insurers.