HDFC
Life Insurance Company India conducted a conference call on 21 July 2023 to
discuss its financial results for the quarter ended June 2023. Vibha Padalkar, MD&CEO
of the bank addressed the call:
Highlights:
The merger of HDFC limited
with HDFC bank has been completed and now the company is subsidiary of HDFC
Bank. HDFC Bank holds increased 50.4% shareholding in the HDFC Life.
The company is focusing on
strengthening at partnership with HDFC Bank and maximizing customer engagement
within the group.
The company has closed the
quarter with a growth of 12% in individual WRP, which was 1.5x of private
industry, despite coming off a strong March.
The product mix of the
company has remains balanced in Q1FY2024.
Over the last 4 years,
despite facing open architecture and intense competition from unlisted
insurers, our market share has steadily increased from 12.5% in FY19 to 16.5%
in FY23 in the private sector and 7.2% to 10.8% at an overall industry level.
The company has covered more
than 2 lakh lives in retail policies and 1.6 crore lives overall in Q1FY24, a
growth of 8% and 34% respectively, over Q1FY23.
Retail sum assured recorded
an increase of 55% and overall sum assured 73%, and overall market share in
Q1FY24 was 16.9%.
Retail protection trends
remain encouraging with YoY growth of 45% in Q1FY24. While the growth is
accentuated by a favourable base, the company expects the pickup in protection
is sustainable and the growth is likely to be healthy for the year.
The company remains
optimistic about growth opportunities in the life insurance sector.
The company expects the
growth to accelerate in the rest of the year with Q2FY2024 growth higher than
Q1FY2024 and H2FY2024 growth higher than H1FY2024 after adjusting for one time excess
demand in March 2023
And incremental business in
the March 2023 was estimated to be around Rs 1000 crore due to change in tax
rules.
The new business margins on merger
entity basis were 26.2% in Q1FY2024 up from 25.1% in Q1FY2023. The company expects
full year margins for FY2024 to be similar to FY2023 margins of 27.4%.
The company has exhibited
healthy improvement in persistency in all cohorts and geographies.
The company has added 15000
agents during Q1FY2024.
All large bank partnerships
are doing well the banca channel has recorded strong 25% growth.
The company has witnessed 50-100bps
improvement in the HDFC Bank share in banca channel.
The growth in the tier 2 and
3 location of the company is getting enhanced post the acquisition of Exide Life.
The company is planning to add 75 new branches and
further it would add branches on hub and spoke model.
|