HDFC Life Insurance Q3 Results: Profit Rises But Misses Estimates
HDFC Life Insurance Co.’s quarterly profit rose over the year earlier, but missed estimates.
The private insurer’s profit increased 4.5% year-on-year to Rs 275.3 crore in the quarter ended December, according to an exchange filing. That compares with the Rs 436-crore consensus estimate of analysts tracked by Bloomberg. Sequentially, the bottom line remained flat.
The company earned a net premium of Rs 12,125.9 crore, a 5.9% rise over the second quarter and a 28% increase year-on-year. Renewal premiums contributed around 45% of the net premium.
Q3 FY22 Highlights (YoY)
Revenue declined 33% to Rs 14,223.8 crore. Sequentially, it declined 30.5%.
Operating income rose 4.6% year-on-year but remained flat over the previous three months at Rs 277.7 crore.
PBT margin stood at 2% against 1.4% as of September and 1.3% a year ago.
The 13th and 61st month persistency ratios—or customer retention—improved over the year earlier but fell sequentially.
Solvency ratio—that measures the extent to which assets cover commitments for future liabilities—stood at 190% as of December 2021, in line with the preceding quarter and 202% a year earlier. It’s still above the minimum solvency requirement of 150%.
The company recorded gross and net claims worth Rs 4,657 crore and Rs 3,406 crore, respectively, as of December 2021.
Highlights For Nine Months Ended December
Value of new business rose 26% to Rs 1,780 crore.
VNB margin contracted to 26.5% from 30.2%.
New business premium received grew 26%.
The product mix comprised non-participating savings at 33%, participating products at 30% and unit-liked plans at 26% on an annualised premium equivalent basis.
Vibha Padalkar, managing director and chief executive officer, said, “We continued to deliver consistent and robust growth of 21% in 9M FY22, resulting in a private market share of 15.2% in terms of Individual WRP (weighted received premium). On a two-year CAGR basis, we registered a growth of 14%, compared with a 5% growth for the overall life insurance industry, while maintaining a balanced and profitable product mix.”
Shares of HDFC Life Insurance were trading 1.96% down after the results were announced compared with the S&P BSE Sensex’s 1.16% fall.