HDFC Life Q3 Results Review - VNB Grows Aided By Margin Neutrality; Premium Growth To Perk Up: Motilal Oswal

Motilal Oswal Report

HDFC Life Insurance Company Ltd. reported a stable Q3 FY23 performance with in-line annual premium equivalent/ of new business and healthy premium growth led by renewal premium (up 30% YoY), while new business premium grew moderately at 10% YoY.

APE rose 26% YoY to Rs 32.6 billion (inline) in Q3 FY23, fueled by annuity, non-linked savings and credit life. Demand for unit linked insurance plan was soft due to volatile capital markets while trend in retail protection improved QoQ.

VNB too increased 26% YoY (inline) with margin expanding 100 bps QoQ to 26.8%. Embedded grew 5% QoQ to Rs 377 billion.

We estimate HDFC Life to deliver ~27% VNB compound annual growth rate over FY22-25 and margin to improve to ~31% by FY25.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.