20 Oct 2022 , 07:41 AM
Result date: 21st October, 2022
Recommendation: Add
Target price: Rs640
Analysts at IIFL Capital Services believe that HDFC Life Insurance Company (HDFC Life)’s balanced product mix will continue to help navigate the business cycle. HDFC Life should see APE growth of 3% over the year-ago quarter, as retail regular premiums are offset by weakness in single premiums, with 100 basis points margin expansion.
Renewal premium could see a healthy growth even as New Business Premium could decline.
HDFC Life’s expense ratio could see an uptick — in line with a pick-up in business growth.
Important management insights to watch out for:
Rs. Billion | September 2022 estimates | YoY change |
New Business Premium | 61.9 | (6.2)% |
Renewal Premium | 57.9 | 15.0% |
Total APE | 26.3 | 3.2% |
Savings APE | 23.0 | 3.3% |
Protection APE | 3.3 | 2.1% |
VNB | 7.2 | 7.1% |
VNB Margin | 27.5% | 100 basis points |
Source: Company, IIFL Research
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