HDFC Life : 25% growth in Value of New Business

HDFC Life : 25% growth in Value of New Business, 18% growth in APE

Other Key Highlights:

·        19% growth in Individual WRP

·        170 bps increase in private market share to 14.2% (basis Individual WRP)

·        25.9% New Business Margin

·        18.1% Operating return on Embedded Value

·        22% growth in Protection APE

·        PAT at Rs 1,295 Crs with robust 17% growth in backbook surplus

The Board of Directors of HDFC Life approved and adopted today the consolidated and standalone audited financial results for the year ended March 31, 2020. Below is the summary of our standalone results:

Commenting on the current situation, Ms. Vibha Padalkar, MD & CEO said “As a result of this pandemic, human lives have been disrupted and organizations around the world are witnessing challenging times. As a responsible corporate citizen, the safety and well-being of our employees, customers and partners and ensuring uninterrupted service to our customers are our foremost priorities. Our head-start as a digital insurer has helped facilitate this.”

Commenting on the FY20 performance, Ms. Vibha Padalkar, MD & CEO said “We continue to deliver growth higher than industry and register steady performance across all key metrics. We believe that insurance remains a multi-decade opportunity with significant potential. The opportunities across mortality, morbidity and longevity remain large in our country. Customer-centricity, product innovation, a diversified distribution network, and technological capabilities are key pillars of our strategy and enablers to provide a sustainable value proposition to our customers, partners and shareholders.”

Key Financial Summary

Rs Cr		FY20	FY19	YoY
Key Financial and Actuarial Metrics
Individual APE		6,145	5,204	18%
Total APE		7,407	6,260	18%
New Business Premium (Indl + Group)		17,239	14,971	15%
Renewal Premium (Indl + Group)		15,468	14,215	9%
Total Premium		32,707	29,186	12%
Assets Under Management		1,27,226	1,25,552	1%
Networth	(1)	6,992	5,659	24%

Profit After Tax		1,295	1,277		1%
Indian Embedded Value		20,650	18,301		13%
Value of new business		1,919	1,537		25%
Rs Cr		FY20	FY19		YoY
Protection based on APE		1,270	1,045		22%
Protection based on NBP		4,762	4,042		18%
		FY20		FY19
Key Financial Ratios
New Business Margins		25.9%		24.6%
Operating Return on EV		18.1%		20.1%
Operating Expenses / Total Premium		13.1%		13.1%
Solvency Ratio		184%		188%
13M / 61M Persistency	(2)	88%/54%		84%/51%
Product mix by Indl APE (UL / Non par savings / Non par protection / Par)		28/45/8/19		55/20/7/18
Distribution mix by Indl APE (Corp Agents/ Agency/ Broker/ Direct)		55/14/9/22		64/13/4/19

Notes:

1.        Networth comprises Share capital, Share premium and Accumulated profits

2.        Persistency ratios are calculated basis original premium, for Individual business

Other key highlights for the year ending March 31, 2020:

•       Private Market Share: Individual WRP grew by 19% leading to expansion of market share by 170 bps to 14.2%. We have maintained our leadership position within the group segment, growing by 20%, resulting in a market share of 29.0%.

•       New Business Lives: Total number of insured lives increased to 6.1 Cr, growing by 19%.

•       Product Portfolio: We continue to maintain a balanced product mix. Our savings business which includes unit linked, par and non-par segments, grew by 18%. With a focus on tapping the protection space further, our Protection APE increased to Rs 1,270 Cr., growing by 22% in FY20 over the corresponding period last year. Our protection share basis APE is 17.2% in FY20.

•       Distribution Mix: Our diversified distribution mix is evidenced by the wide access to our customers with 270 plus partners, including more than 40 new-ecosystem partners as on March 31, 2020. This is further supplemented by our 421 branches spread across the country. 

•       Assets Under Management: As on March 31, 2020, our AUM is Rs. 1.3 lakh Cr. (Debt:Equity mix - 71:29; more than 96% debt investments are in G-Secs and AAA bonds as on March 31, 2020.

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