Highlights:

The company continues to maintain a steady growth trajectory. In Q3, the company grew by 17% in terms of individual WRP, which is ahead of industry growth. Despite intense competition, the company has consistently been ranked amongst the top three life insurers across individual and group businesses.

The product mix remains balanced with non-par savings at 39%, participating products at 29%, ULIPs at 21%, individual protection at 4% and annuity at 6% based on individual APE.

Within the non-par segment, shorter tenure tenor product, Sanchay FMP, continues to do well and now forms about a sixth of the segment.

The company remains enthused over the protection opportunity in India whilst balancing it with good risk management in a holistic and calibrated manner.

The company maintains market leadership in credit life by delivering strong growth of 52% across nearly 300 partnerships. While growth in retail protection remained tepid on a yoy basis, the company saw sequential growth of 13% in Q3FY23.

Online search trends indicate that the company continues to be amongst the top searched companies in its peer set.

The company has taken several initiatives to improve customer convenience.

Overall protection APE grew by over 20% in 9MFY23 and the company expects individual protection to continue picking up in the coming quarters.

On the retirement funds, the company has steadily gained market share in the annuity business, which grew by 22% on received premium basis in 9MFY23 compared to a 1% growth for the industry.

APE growth is much higher at 68% due to a pickup in regular premium annuity products, Systematic Retirement Plan.

The company is on track deliver margin neutrality for the combined entity for the year, having delivered a new business margin of 26.5%, similar to that in 9MFY22.

The value of new business is Rs 2163 crore, implying a yoy growth of 22%. Embedded value stood at Rs 37702 crore end December 2022, with an operating return on embedded value of 17.5% for 9MFY23.

Renewal collection trends continue to be healthy on the back of improving persistency.

Bancassurance channel grew by 18% in 9MFY23 based on individual APE. The company has announced corporate agency partnership with AU Small Finance Bank.

Agency channel clocked more than 2 times company-level growth in individual APE in the 9MFY23. The share of the channel has increased from 14% to almost 18% in the merged entity. The company expects growth in this channel to be driven by deeper geographies and customer penetration.

HDFC Pension AUM doubled in less than 17 months to reach the Rs 40000 crore milestone on 2 January 2023 with a market share of 40%, up from 37% last year with AUM growing by 63%.

HDFC International, has been granted the certificate of registration to set up a branch in GIFT City.

IRDA is examining implementation of risk-based solvency approach. The company believes that this will benefit the sector by not just freeing up excess capital deployed, but also ensure capital required is in line with the risk on the balance sheet.

On the recommendations of Ministry of Finance regarding composite license and permission to distribute other financial services products, the company believes that such changes can further the overall development of the sector.