HDFC Life Q4 revenues spurts yoy on turnaround in investment losses

HDFC Life Insurance reported top line revenues of Rs19,192.86cr for the Mar-21 quarter, lower -9.16% on a sequential basis.

Apr 26, 2021 06:04 IST India Infoline News Service

HDFC Life Insurance reported top line revenues of Rs19,192.86cr for the Mar-21 quarter, lower -9.16% on a sequential basis. The sequential fall in top line revenues was largely on account of fall in investment income. However, on a yoy basis, the revenue spurted as it turned around from investment losses in the Mar-20 quarter.

On subject of provision for actuarial liabilities, it is lower on a sequential basis but sharply higher on a yoy basis. That is more because of higher claim losses assessed in the fourth quarter based on an actuarial assessment.

Net profits for the quarter were up 2.38% on a yoy basis and 21.11% on a sequential basis. Clearly, elevated COVID risks, higher compensation pay-out and lower investment income due to falling yields have resulted in flat profits in Q4.
HDFC Life reported 17% growth in individual weighted received premium (WRP) as compared to just 8% growth for the private insurance sector. HDFC Life also reported 26.1% new business margin (NBM) and 14% growth in value of new business (VNB).

HDFC Life reported an embedded value operating return (EVOP) of 18.5% along with an enterprise value or EV of Rs26,617cr. HDFC Life settled a total of 2.9 lakh death claims during the year implying pay outs of Rs3,000cr.

Financial highlights for Mar-21 compared yoy and sequentially

HDFC Life Insurance
Rs in Crore Mar-21 Mar-20 YOY Dec-20 QOQ
Total Revenues ₹ 19,192.86 ₹ 430.13 4362.11% ₹ 21,128.63 -9.16%
Net Profit (PAT) ₹ 319.06 ₹ 311.65 2.38% ₹ 263.44 21.11%
Diluted EPS ₹ 1.58 ₹ 1.54 ₹ 1.30
Net Margins 1.66% 72.45% 1.25%
Solvency Ratio 201% 184% 202%
Expense Mgmt Ratio 16.30% 15.90% 18.30%
Policy Holder Liability Ratio 1896.70% 1769.30% 1879.30%

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