HDFC Life Q4 Results Update

 On 26th April 2022, HDFC Life announced its quarterly results for the last quarter of FY2022.

Key Highlights:

- HDFC Life Insurance reported a 12.44 percent year-on-year rise in its net profit at Rs.357.52 crore in the quarter ended 31 March 2022. 

- The Renewal premium grew nearly 16 percent to Rs.7,341.17 crore in Q4FY22 against Rs 6,350.40 crore in Q4FY21. 

- The Single premium rose 8.2 percent to Rs 4,505.22 crore from Rs 4,170.58 crore on year.

- HDFC Life also added that it witnessed a sustained performance with 22 percent growth in the value of the new business (VNB) 

- VNB margin was up 240 basis points at 29.2 percent in Q4FY22.

- The company's total annual premium equivalent (APE) was up by 5.8 percent YoY at Rs.3,049 crore.

Overall Market Share:

HDFC Life is amongst the top 2 in terms of Overall New Business and individual new business segments in the private sector with market share at 21.0% and 14.8% respectively. The company  Ranked #1 within-group new business segment in the private sector with a market share of 27.9%

Product Portfolio: 

The company continued to maintain a balanced product mix with the share of participating savings, non-participating savings, ULIPs, protection, and annuity accounted for 30%, 33%, 26%, 6%, and 5% of Individual APE respectively.

Distribution Mix: 

The diversified distribution mix is evidenced by wide access to its customers with nearly 300 partners and 1 lakh+ agents as of March 31, 2022, further supplemented by 372 branches spread across the country

Assets Under Management: 

The company reported assets under management of over Rs 2 lakh crore (Debt: Equity mix 63:37); over 98% of debt investments in G-Secs and AAA bonds

The board has recommended a final dividend of Rs.1.70 for the financial year 2021-22, subject to the approval of the Members at the ensuing Annual General Meeting. 

Commenting on the FY22 performance, Vibha Padalkar, MD & CEO said “We clocked a growth of 16% in individual weighted received premium (WRP) in FY22 with a market share of 14.8% and 9.3% in the private and overall sector, respectively. We continue to deliver consistent all-round performance and be ranked amongst the top three life insurers in the industry."

"Despite very trying times during the 2-year pandemic, our 2-year CAGR of 17% was almost 2 times industry growth of 9%. Overall protection grew by 24% in terms of APE and 47% in terms of new business premium. This was largely led by a 55% growth in credit life new business premium, on the back of higher disbursements. On the retirement side, our annuity business recorded a 24% growth vis-à-vis industry growth of 3%. Annuities now contribute over a fifth of our new business premiums, with us almost doubling our business in the last 3 years," Padalkar added.

On Wednesday the HDFC Life share price dropped by 1%.