HDFC Life Insurance Company

Healthy and consistent performance

Apr 27, 2021 09:04 IST capital market

HDFC Life Insurance Company has recorded 2% growth in the net profit to Rs 317.94 crore in the quarter ended March 2021 (Q4FY2021). The company has maintained strong growth in the premium collection and exhibited improvement in new business margin of 26.1% in FY2021 on the back of a favourable product mix and cost control measures.

The value of new business (VNB) jumped 52% to Rs 777 crore in Q4FY2021 from Rs 512 crore in Q4FY2020. The company has posted a 22% surge in total premium collection to Rs 12910 crore, driven by a 29% surge in new business premium, while the renewal premium income also moved up 15%.

The company ranked number 2 in terms of Individual WRP with market share expanding by 130 bps from 14.2% to 15.5%. Its private market share within the group and overall new business segment stood at 27.6% and 21.5% respectively.

The company continues to maintain a balanced product mix with a share of participating savings, non-participating savings, ULIPs, protection and annuity accounting for 34%, 31%, 24%, 7% and 5% of Individual APE respectively. The focus on the retiral segment resulted in 46% growth in the Annuity business.

The diversified distribution network of the company comprises a wide spectrum of over 300 partners, including more than 50 new-ecosystem partners. This is supplemented by 390 branches across the country.

The Assets under Management surged 37%to Rs 173839 crore end March 2021 over Rs 127226 crore end March 2020. The Debt:Equity mix was 64:36, while about 98% of debt investments were in G-Secs and AAA bonds end March 2021

Networth increased by 21% to Rs 8430 crore end March 2021, while the solvency ratio of the company was healthy at 201% end March 2021.

Embedded Value (IEV methodology) increased 29% to yoy Rs 26617 crore with Embedded Value per share rising to Rs 131.7 per share at end March 2021.

Financial Performance FY2021:

HDFC Life Insurance Company has posted 5% growth in the net profit to Rs 1360.10 crore in FY2021. Total Premium increased 18% to Rs 38584 crore in FY2021, aided by new business growth of 17% and 20% in renewal business. The value of new business (VNB) rose 14% to Rs 2185 crore, while the new business margins improved to 26.1% for FY2021 from 20.5% in FY2020.

HDFC Life Insurance Company: Results Standalone Policyholders Account

 

2103 (3) 2003 (3) Var % 2103 (12) 2003 (12) Var %
Premium earned (net) 12868.01 10464.46 23 38122.30 32223.60 18
Income from Investments 6015.42 -10229.92 LP 32677.57 -3310.87 LP
Other income 66.61 109.31 -39 183.39 243.95 -25
Contribution from the Shareholders account 241.28 74.79 223 258.56 104.75 147
Total Income 19191.32 418.64 4484 71241.82 29261.43 143
Commission 597.51 428.94 39 1710.40 1491.18 15
Op. expenses related to Insurance business 1510.11 1252.18 21 4585.97 4266.90 7
Others 5.65 468.85 -99 168.21 920.66 -82
Benefits paid (Net) 8837.57 5326.91 66 22574.78 19021.48 19
Change in valuation of policy liabilities 7622.68 -7316.47 PL 40829.63 2440.76 1573
Provision for taxation 183.81 122.18 50 274.39 149.03 84
Total Expense 18757.33 282.59 6538 70143.38 28290.01 148
PAT 433.99 136.05 219 1098.44 971.42 13
Transfer to Shareholders account 286.59 451.66 -37 990.90 1191.39 -17

HDFC Life Insurance Company: Results Standalone Shareholders Account

 

2103 (3) 2003 (3) Var % 2103 (12) 2003 (12) Var %
Amounts transferred from Policyholders account 286.59 451.66 -37 990.90 1191.39 -17
Income from investments 271.30 104.57 159 647.57 456.37 42
Total income 557.89 556.23 0 1638.47 1647.76 -1
Expenses (apart from Insurance) 24.05 17.94 34 63.73 33.42 91
Contribution to policyholders account 241.28 74.79 223 258.56 104.75 147
Others -16.52 179.03 LP -37.31 197.85 LP
Total Expenses 248.81 271.76 -8 284.98 336.02 -15
PBT 309.08 284.47 9 1353.49 1311.74 3
Tax -8.86 -27.24 -67 -6.61 16.47 LP
PAT 317.94 311.71 2 1360.10 1295.27 5
EPS (Rs)* 6.3 6.2 6.7 6.4
* on current equity of Rs 2020.94 crore of face value of Rs 10 each
PL: Profit to Loss, LP: Loss to Profit
Figures in crore, Source: Capitaline Corporate Database

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