HDFC Life Insurance Company

Returns to strong growth in Q2FY2021, improves margins

Oct 20, 2020 10:10 IST capital market

HDFC Life Insurance Company has recorded 6% growth in the net profit to Rs 326.09 crore in the quarter ended September 2020 (Q2FY2021). The company has posted strong growth in the premium collection and exhibited sequential improvement in new business margin of 25.1% on the back of a favourable product mix and cost control measures. The value of new business (VNB) jumped 22% to Rs 547 crore in Q2FY2021 from Rs 448 crore in Q2FY2020. The company has posted 35% surge in total premium collection to Rs 10183 crore, driven by 47% growth in new business premium, while the renewal premium income also moved up 21%.

The company ranked number 2 in terms of Individual WRP with market share expanding by 235 bps from 15.2% to 17.5%. Its private market share within the group and overall new business segment stood at 27.4% and 23.3% respectively.

The company continues to maintain a balanced product mix with share of participating savings at 33% of Individual APE, non participating savings 30%, ULIPs 23%, protection 9% and annuity accounting 5%. The focus of the company on the protection segment resulted in 38% growth in the individual segment

The diversified distribution mix is evidenced by the wide spectrum of 300+ partners, including more than 50 new-ecosystem partners. This is supplemented by 420 branches across the country

The Assets Under Management increased 15%to Rs 150622 crore end September 2020 over Rs 131012 crore end September 2019. The Debt:Equity mix was 67:33, while about 97% of debt investments were in G-Secs and AAA bonds end September 2020

Networth increased by 22% to Rs 7787 crore end September 2020, while the solvency ratio of the company improved to 203% end September 2020.

Embedded Value (IEV methodology) increased 16% to yoy Rs 23332 crore with Embedded Value per share rising to Rs 115.5 per share at end September 2020.

Financial Performance H1FY2021:

HDFC Life Insurance Company has posted 6% growth in the net profit to Rs 777.18 crore in H1FY2021. Total Premium increased 14% to Rs 16045 crore in H1FY2021, aided by new business growth of 7% and 22% in renewal business. The persistency ratios continued to trend strongly across various cohorts. The value of new business (VNB) declined 12% to Rs 838 crore, while the new business margins eased to 25.1% for H1FY2021.

HDFC Life Insurance Company: Results Standalone Policyholders Account

 

2009 (3) 1909 (3) Var % 2009 (6) 1909 (6) Var % 2003 (12) 1903 (12) Var %
Premium earned (net) 10045.44 7453.68 35 15767.28 13904.84 13 32223.60 28924.01 11
Income from Investments 6318.81 1135.12 457 15067.91 3186.50 373 -3310.87 9027.49 PL
Other income 43.11 48.20 -11 81.11 81.60 -1 243.95 176.11 39
Contribution from the Shareholders account 7.40 21.13 -65 7.40 21.13 -65 104.75 308.95 -66
Total Income 16414.76 8658.13 90 30923.70 17194.07 80 29261.43 38436.56 -24
Commission 424.74 373.94 14 664.67 701.51 -5 1491.18 1131.55 32
Op. expenses related to Insurance business 1101.36 1086.87 1 1768.57 1963.51 -10 4266.90 3800.76 12
Others 91.78 144.18 -36 117.13 313.18 -63 920.66 430.38 114
Benefits paid (Net) 4755.82 4223.48 13 7554.67 7885.23 -4 19021.48 13988.91 36
Change in valuation of policy liabilities 9884.88 2641.09 274 20379.17 5760.74 254 2440.76 17507.46 -86
Provision for taxation 17.68 -24.37 PL 49.24 -19.53 PL 149.03 226.79 -34
Total Expense 16276.26 8445.19 93 30533.45 16604.64 84 28290.01 37085.85 -24
PAT 138.50 212.94 -35 390.25 589.43 -34 971.42 1350.71 -28
Transfer to Shareholders account 217.66 220.30 -1 564.54 570.63 -1 1191.39 1206.90 -1

HDFC Life Insurance Company: Results Standalone Shareholders Account

 

2009 (3) 1909 (3) Var % 2009 (6) 1909 (6) Var % 2003 (12) 1903 (12) Var %
Amounts transferred from Policyholders account 217.66 220.30 -1 564.54 570.63 -1 1191.39 1206.90 -1
Income from investments 137.09 140.00 -2 233.54 238.77 -2 456.37 429.47 6
Total income 354.75 360.30 -2 798.08 809.40 -1 1647.76 1636.37 1
Expenses (apart from Insurance) 14.44 6.82 112 21.26 8.85 140 33.42 27.81 20
Contribution to policyholders account 7.40 21.13 -65 7.40 21.13 -65 104.75 308.95 -66
Others 6.70 5.58 20 -7.99 15.77 LP 197.85 9.73 1933
Total Expenses 28.54 33.53 -15 20.67 45.75 -55 336.02 346.49 -3
PBT 326.21 326.77 0 777.41 763.65 2 1311.74 1289.88 2
Tax 0.12 18.08 -99 0.23 30.34 -99 16.47 13.09 26
PAT 326.09 308.69 6 777.18 733.31 6 1295.27 1276.79 1
EPS (Rs)* 6.5 6.1 7.7 7.3 6.4 6.3
* on current equity of Rs 2019.46 crore of face value of Rs 10 each
PL: Profit to Loss, LP: Loss to Profit
Figures in crore, Source: Capitaline Database

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