Highlights:

India's Covid vaccination coverage has crossed the 150 crore mark, with almost 90% of the eligible population receiving at least one dose. The government has also started vaccination drives for youngsters in the age group 15-18 years and booster doses to the vulnerable section.

These developments seem to have helped curtail the mortality impact of the more transmissible Omicron variant.

The company was holding covid related provision of Rs 204 crore end September 2021, of which the company has utilized Rs 150 crore of provisions in Q3FY2022 and Rs 54 crore of provisions are held at end December 2021.

Business sentiment remains positive and the high-frequency indicators suggest economic revival is on track. The company is optimistic about the sustenance of business momentum in the near term.

Effective from 1 January 2022, Exide Life has become fully wholly owned subsidiary of the company. The integration process is underway and the company expects to absorb the acquired business seamlessly, whilst maximizing value unlock over the next 18-24 months. The company expects merger to be margin accretive.

In the nine months ended December 2021, Exide Life's individual WRP grew 31%, comfortably higher than industry growth of 20%.

The company has continued to deliver consistent and robust growth of 21% in 9M FY22, resulting in a private market share of 15.2% in terms of Individual WRP. The company has registered a 2-year CAGR growth of 14% against 5% growth for the overall life insurance industry

The company has continued to maintain a balanced and profitable product mix.

On the claims front, the company has honoured close to 3 lakh claims during 9MFY22. Gross and net claims were recorded at Rs 4657 crore and Rs 3406 crore. The claims experience in line with expectation

The company has recorded healthy 19% growth in renewal premiums and exhibited further improvement in 13th and 61st month persistency which now stands at 92% and 57% respectively vs. 89% and 53% in 9MFY21.

The value of new business increased 26% to Rs 1780 crore in 9MFY2022. New business margin improved to 26.5% for 9MFY22 from 25.6% in 9MFY21.

All channels registered growth in double digits with proprietary distribution (Agency, Direct and Online channels) showing growth of 25% based on individual APE.

The company has tied up with South Indian Bank in Q3FY2022.

Agency channel witnessed robust growth in individual APE of 35%. The channel has licensed more than 28,000 agents during 9MFY22, an increase of 52% over the previous year.

The net profit of the company has declined 18% to Rs 850 crore for 9MFY22, which is impacted due to elevated claims during the pandemic and reserving for excess mortality.

The solvency ratio stands at 190% end December 2021. The AUM increased 18% yoy to Rs 1.95 lakh crore end December 2021.

The wholly owned subsidiary of the company, HDFC Pension, has crossed the milestone of Rs 25000 crore AUM on 5 January 2022. The journey has been gaining momentum with first Rs 10,000 crore AUM achieved in 7 years, to the next Rs 10000 crore in 14 months and the last Rs 5000 crore in just three months.

HDFC Pension Company has a market share of 37% end December 2021, making it the number 1 private Pension Fund Manager (PFM) in terms of NPS AUM. In addition, NPS is a significant feeder into annuity business of the company, growing at a rapid pace.

The company as undertaken price hike of 15-25% in the protection segment. With the price hike, the company has raised the limit for taking reinsurance from Rs 20 lakh ticket size to Rs 40 lakh crore. Thus, the risk retained on book has increased to 35% from 20% earlier.

The proprietary channel is trending well, while the company expects merger for Exide Life to further boost proprietary channel.