Capitaline

Results 26-Apr-22

Analysis

HDFC Life Insurance Company

Stable quarter, VNB margins improving

HDFC Life Insurance Company, on consolidated basis, has posted strong net profit of Rs 506.19 crore in the quarter ended March 2022, which includes figure for recently acquired Exide life insurance Company effective from 01 January 2022. On standalone basis, the company has posted healthy 12% increase in the net profit to Rs 357.52 crore for Q4FY2022.

The company has continued to maintain healthy growth in the premium collection and exhibited further improvement in new business margin to 27.4% in FY2022 from 26.5% in 9MFY2022 and 26.1% in FY2021 on the back of a favourable product mix and cost control measures.

The value of new business (VNB) increased 15% to Rs 895 crore in Q4FY2022 from Rs 777 crore in Q4FY2021. The company has posted a 12% increase in total premium collection to Rs 14421.3 crore, driven by a 8% rise in new business premium, while the renewal premium income also moved up 16%.

The company is amongst top 2 in terms of Overall New Business and individual new business segment in private sector with market share at 21.0% and 14.8% respectively. The company also ranked number 1 within group new business segment in private sector with market share of 27.9%.

The product portfolio continues to maintain a balanced product mix with share of participating savings, non participating savings, ULIPs, protection and annuity accounted for 30%, 33%, 26%, 6% and 5% of Individual APE respectively

The distribution mix was diversified evidenced by wide access to customers with nearly 300 partners and 1 lakh+ agents end March 2022, further supplemented by 372 branches spread across the country

The Assets Under Management increased 17% to Rs 204170 crore end March 2022 with Debt: Equity mix of 63:37, while over 98% of debt investments were in G-Secs and AAA bonds.

Standalone Networth increased to Rs 15483 crore end March 2022, while the solvency ratio of the company was at 176% end March 2022.

Embedded Value (IEV methodology) on standalone basis increased 13% to yoy Rs 30048 crore with Embedded Value per share at Rs 142.2 per share at end March 2022.

The subsidiary, HDFC Pension, touched AUM of Rs 28400 crore end March 2022, showing strong growth of 73%. HDFC Pension continues to be the #1 private Pension Fund Manager (PFM) in terms of NPS AUM with a market share of 37% end March 2022.

Exide Life Insurance Company has posted 22% growth in Individual APE to Rs 730 crore in FY2022 with strong improvement in VNB margin to 44% from 35%. AUM of the company increased 12% to Rs 19680 crore. Embedded value has increased 8% to Rs 2910 crore. The solvency ratio stood at 217%. 13th month persistency has improved to 78%.

Financial Performance FY2022:

HDFC Life Insurance Company has posted 11% decline in the net profit to Rs 1207.69 crore on standalone basis in FY2022, on the back of higher claims reserving warranted by the second wave of the pandemic. Total Premium increased 19% to Rs 45963 crore in FY2022, aided by new business growth of 20% and 18% in renewal business. Value of New Business was Rs 2675 crore, recording a robust growth of 22% over last year.

On consolidated basis, HDFC Life Insurance Company has posted net profit of Rs 1326.93 crore in FY2023.

HDFC Life Insurance Company: Results Consolidated Policyholders Account
	2203 (3)	2103 (3)	Var %$	2203 (12)	2103 (12)	Var %$
Premium earned (net)	15624.90	12897.01		46800.95	38194.20
Income from Investments	1688.58	6016.78		19511.80	32683.86
Other income	78.81	66.61		192.31	183.39
Contribution from the Shareholders` account	290.02	241.28		554.44	258.56
Total Income	17682.31	19221.68		67059.50	71320.01
Commission	686.45	599.35		2007.75	1712.45
Op. expenses related to Insurance business	2042.90	1512.06		5852.98	4593.33
Others	102.57	5.65		117.58	168.21
Benefits paid (Net)	10305.23	8855.48		32616.32	22630.17
Change in valuation of policy liabilities	3722.04	7630.03		25237.00	40842.33
Provision for taxation	154.86	183.81		184.50	274.39
Total Expense	17014.05	18786.38		66016.13	70220.88
PAT	668.26	435.30		1043.37	1099.13
Transfer to Shareholders` account	628.62	287.89		1105.72	991.58

HDFC Life Insurance Company: Results Consolidated Shareholders Account
	2203 (3)	2103 (3)	Var %$	2203 (12)	2103 (12)	Var %$
Amounts transferred from Policyholders` account	628.62	287.89		1105.72	991.58
Income from investments	168.13	271.81		813.10	649.97
Others	5.56	0.96		19.01	3.10
Total income	802.31	560.66		1937.83	1644.65
Expenses (apart from Insurance)	40.03	25.68		113.96	69.12
Contribution to policyholders account	290.02	241.28		554.44	258.56
Others	-0.58	-16.52		-33.32	-37.31
Total Expenses	329.47	250.44		635.08	290.37
PBT	472.84	310.21		1302.75	1354.28
Tax	-33.35	-8.85		-24.18	-6.59
PAT	506.19	319.06		1326.93	1360.87
EPS (Rs)*	9.6	6.0		6.3	6.4
* on current equity of Rs 2112.62 crore of face value of Rs 10 each
$ Figures for 2203 (3) and 2203 (12) includes figures for Exide Life Insurance Company and are not comparable with earlier periods
Figures in crore, Source: Capitaline Corporate Database

Previous News

HDFC Life Insurance Company
( Results - Analysis 27-Apr-23 08:30 )

Life insurers’ premium income rose 22% to Rs 32,644 crore in August
( Insurance - 09-Sep-24 16:12 )

HDFC Life jumps 10% in seven days
( Hot Pursuit - 25-Nov-22 11:11 )

HDFC life insurance sets record date for final dividend for FY23
( Insurance - 08-May-23 18:20 )

HDFC Life Insurance Company Ltd up for five straight sessions
( Hot Pursuit - 06-Apr-23 13:00 )

HDFC Life Insurance Company Ltd soars 2.05%
( Hot Pursuit - 09-Feb-23 13:05 )

HDFC Life Insurance Company Ltd up for fifth session
( Hot Pursuit - 06-Jan-23 13:00 )

HDFC Life Insurance Company
( Results - Analysis 26-Apr-22 21:31 )

HDFC Life Insurance Company standalone net profit rises 12.45% in the March 2022 quarter
( Results - Announcements 26-Apr-22 16:45 )

HDFC Life Insurance Company
( Analyst Meet / AGM - Conference Call 27-Apr-22 08:55 )

HDFC Life receives approval for change in promoter of sponsor to HDFC Bank
( Corporate News - 12-Nov-22 10:09 )