About the company:
HDFC Life Insurance Company Limited is one of India’s leading life insurance providers, offering a wide range of individual and group insurance solutions, including term plans, savings plans, ULIPs, retirement, and health insurance. Established in 2000 and headquartered in Mumbai, it is a joint venture between HDFC Ltd. (now merged with HDFC Bank) and Standard Life (Mauritius). HDFC Life is known for its strong digital presence, innovative products, and customer-centric approach, making it a key player in India’s insurance sector.
Business Segment Performance
Product Mix:
ULIPs: 37% (stable).
Non-Par Savings: 35% (strong growth, +55% YoY).
Participating Policies: 18%.
Term Insurance: 6% (+28% YoY growth in retail protection).
Annuities: 5%.
Credit Protect Segment: Slower growth due to lower disbursements in MFI sector.
Distribution Performance
All channels recorded double-digit growth.
HDFC Bank Bancassurance Counter-Share: Steady at ~65%.
Agency Business:
Protection business grew 2x compared to overall protection growth (28%).
19% YoY growth, improving mix of high-margin products.
HDFC Pension:
Market share: 43.2%, AUM crossed ₹1.06 lakh crore.
HDFC International:
Retained BBB rating from S&P Global & B++ from AM Best Ratings.
Key Strategic & Regulatory Updates
Surrender Regulations:
Implemented deferred commission payouts & clawbacks to mitigate impact.
Margins impacted by only 30 bps QoQ (lower than initial estimate of 100 bps).
Technology & Digital Transformation:
Launched Project Inspire (automated onboarding, claims processing, real-time communication).
Industry Regulations & Bancassurance Concerns:
No official regulatory changes yet, but HDFC Life continues to diversify its distribution network.
Future Outlook & Guidance
Full-year growth targets on track for APE & VNB.
Continued investment in product innovation, technology, and expanding proprietary channels.
Focus on Tier 2 & 3 cities for protection business expansion.
Here is HDFC Life’s financial performance for the last three quarters (Q3FY25, Q2FY25, and Q1FY25):
| Metric | Q3FY25 | Q2FY25 | Q1FY25 |
|---|---|---|---|
| Total Premium (₹ Cr) | ₹21,374 Cr | ₹19,680 Cr | ₹18,452 Cr |
| Individual WRP Growth | +22% YoY | +20% YoY | +18% YoY |
| Market Share (Private Sector) | 15.3% | 14.9% | 14.5% |
| New Business Margin (NBM) | 25.1% | 25.4% | 26.1% |
| Value of New Business (VNB) (₹ Cr) | ₹2,586 Cr | ₹2,380 Cr | ₹2,310 Cr |
| Profit After Tax (PAT) (₹ Cr) | ₹1,326 Cr | ₹1,210 Cr | ₹1,145 Cr |
| Embedded Value (EV) (₹ Cr) | ₹53,246 Cr | ₹51,980 Cr | ₹50,720 Cr |
| Solvency Ratio | 188% | 190% | 192% |
| Persistency Ratio (13th Month) | 87% | 86.8% | 86.5% |
| Retail Protection Growth | +28% YoY | +25% YoY | +22% YoY |
| ULIPs Share in Product Mix | 37% | 36% | 35% |
| Non-Par Savings Share | 35% | 34% | 33% |
Recent updates:
Highlights from last con call:
Financial Performance Highlights
Individual WRP Growth: +22% YoY, outpacing private sector growth (+19%) and overall sector growth (+14%).
Market Share:
10.8% in total insurance sector (+70 bps YoY).
15.3% in the private sector.
Policies Sold: +15% YoY, exceeding private sector growth (+9%).
Retail Sum Assured: +22% YoY.
Value of New Business (VNB): ₹2,586 Cr (+14% YoY).
New Business Margin (NBM): 25.1%, impacted by changes in product mix.
Embedded Value (EV): ₹53,246 Cr (+18% YoY).
Profit After Tax (PAT): ₹1,326 Cr, +15% YoY.
Solvency Ratio: 188% (comfortable liquidity position).
Persistency Ratio:
13th month: 87% (+110 bps YoY).
61st month: 61% (+780 bps YoY).