HDFC Life Q4 net profits up 58.65% at Rs506cr on sharply favourable change in actuarial liability

28 Apr 2022 , 06:56 PM

HDFC Life Insurance Ltd reported -8.01% lower revenues yoy in the Mar-22 quarter at Rs17,682cr. While the net premium income was higher, the fall in revenues was largely on account of a sharp fall in the investment income for the fourth quarter.

For the full fiscal year FY22, the value of new business (VNB) was sharply higher by 22% at Rs26.75 billion compared to Rs21.85 billion in FY21.

The new business margin in FY22 also showed a sharp spike from 26.1% to 27.4% on a yoy basis. The annual premium equivalent or APE improved on a yoy basis in FY22 by 17% to Rs97.58 billion compared to Rs83.72 billion last year.

The embedded value of HDFC Life as of the close of FY22 stood at Rs300.48 billion compared to Rs266.17 billion in the previous year. The embedded valuation of HDFC Life was nearly 13% higher on a yoy basis.

Net margins for the Mar-22 quarter stood at 2.86% compared to 1.66% in the year ago Mar-21 quarter and sharply higher also than 1.93% recorded in the sequential Dec-21 quarter. The Expense management ratio has gone up in the latest quarter by over 100 bps on a yoy basis compared to Mar-21 quarter. The profit growth was account of the favourable movement in the actuarial liability change or estimate of losses.

Financial highlights for Mar-22 compared yoy and sequentially

	HDFC Life Insurance
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income	₹ 17,682	₹ 19,222	-8.01%	₹ 14,247	24.12%
Net Profit	₹ 506	₹ 319	58.65%	₹ 275	83.88%
Diluted EPS	₹ 2.47	₹ 1.58		₹ 1.36
Net Margins	2.86%	1.66%		1.93%
Solvency Ratio	1.760	2.010		1.900
Expense Mgmt Ratio	17.30%	16.30%		16.40%
Policy Holder Liability Ratio	1329.50%	1896.80%		2021.60%