Home » HDFC Life Insurance Company Ltd. – Q2 Results

Last Updated on October 17, 2023 by BFSLTeam BFSLTeam

HDFC Life Insurance Company Ltd. - Q2 Results

Introduction

HDFC Life Insurance Company Limited, or HDFC Life in short, is one of India’s leading private life insurance companies. It was established in 2000 as a joint venture between Housing Development Finance Corporation Limited (HDFC) and Standard Life Aberdeen PLC, a global investment company. HDFC Life is renowned for its commitment to providing comprehensive life insurance solutions to individuals and families across India.

HDFC Life operates in the insurance sector, offering a wide array of life insurance products and services. The company’s offerings encompass various life insurance plans, including term insurance, savings and investment plans, health and critical illness insurance, retirement and pension plans, child plans, and more. These products are tailored to cater to the diverse financial needs and protection requirements of customers.

The company has released its performance results for the quarter ending on 30 Sep, 2023. Here are the key facts and figures that you need to know.

Additional Read: Q2 Results Dashboard

Key Financial Metrics

Performance Highlights

  • H1 Total Premium Income: ₹ 26,613 Cr
  • Growth: 14% YoY
  • H1 Net Profit: ₹ 792 Cr
  • Growth: 15% YoY
  • Total Annualised Premium Equivalent (APE): ₹ 5,373 Cr, up 9% YoY
  • H1 New Business Value: ₹ 1,411 Cr, up 10%
  • New Business Margin (VNB): 26.2%

HDFC Life Q2 results are interesting to read. The company has improved its YoY performance across most of the key metrics. 

Additional Read: HDFC Life Insurance Company Overview

As per the company report, its Weighted Received Premium (WRP) growth rate for H1 2023 stood at 10.3% which is 2.3% higher than the industry standard of 8%. The company maintained its market share leadership at 15.7% in the private sector and at 10.3% overall. HDFC Life sold 4.76 Lakhs new policies in H1 2023 as compared to H1 2022 when the number of policies sold was 4.34 lakhs. 

For the new business premium, protection growth was registered at 28% with retail protection YoY growth of 46% in H1 2023. Sum assured too grew well at 61% for retail business and 45% for overall business. 

While these figures show a steady growth and upswing in business, some failed to match market expectations. For example, the Annualised Premium Equivalent (APE) reached ₹ 3,045 Cr, although it was expected to be closer to the ₹ 3,200 Cr mark. Similarly, the VNB (value of new business) margin saw a marginal dip from 27.1% to 26.4% H1 YoY.

Additional Read: HDFC Life Share Price

Management Commentary

Major Announcements

  • Two new products launched – HDFC Life Sanchay Legacy, and  Click 2 Protect Elite.
  • Featured in India’s Best Workplaces for Millennials 2023 by Great Place to Work.
  • Listed in Asia’s Best Workplaces 2023 by Great Place to Work.
  • Recognized as one of the 100 Best Companies for Women in India (2023) by Avtar.

YoY Comparison: Reported Financial Figures

H1 FY 2022-23H1 FY 2023-24YoY
Individual APE₹ 4,111 Cr₹ 4,478 Cr9%
Total APE₹ 4,914 Cr₹ 5,373 Cr9%
Assets Under Management₹ 2,24,901Cr₹ 2,64,870 Cr18%
New Business Premium₹ 11,325 Cr₹ 12,970 Cr15%
Renewal Premium₹ 12,007 Cr₹ 13,643 Cr14%
Total Premium₹ 23,332 Cr₹ 26,613 Cr14%
Profit After Tax₹ 686 Cr₹ 792 Cr15%

Key Financial Ratios

H1 FY 2022-23H1 FY 2023-24
Solvency Ratio210%194%
New Business Margins26.2%26.2%
Operating Return on EV16.9%16.4%
Total Expenses / Total Premium19.3%19.7%

Stock Performance

HDFC Life share price opened at ₹ 623.25 on 13 Oct, 2023 and closed at ₹ 623.70. During the day, it reached a high of ₹ 633.00 and touched a low of ₹ 614.50 before bouncing back to recover its opening position.

Source: 

  1. https://www.hdfclife.com/content/dam/hdfclifeinsurancecompany/about-us/pdf/investor-relations/financial-information/Quarterly-financial-results/Press-release-H1FY24.pdf
  2. https://www.livemint.com/companies/company-results/hdfc-life-q2-results-net-profit-grows-15-yoy-to-rs-378-crore-11697188942260.html
  3. https://www.moneycontrol.com/news/business/earnings/hdfc-life-q2-results-net-profit-rises-15-to-rs-376-crore-11525711.html
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