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HDFC Life Insurance - Q4FY22 First Cut - ICICI Direct

Posted On : 2022-04-27 12:05:16( TIMEZONE : IST )

(CMP - Rs. 549, MCap - Rs. 116088 crore)

HDFC Life Insurance reported healthy growth in premiums with focus on protection mix and improvement in persistency. Controlled opex led to profits ahead of estimates.

Q4FY22 Earnings Summary

- HDFC Life posted good set of numbers on overall basis as GWP was up 17.7% QoQ and 11.7% YoY to Rs. 14422 crore which was mainly driven by strong 21.7% QoQ growth in First year premium and 32.4% sequential uptick in renewal premium. On APE basis, the growth came in at 16.5% on full year basis

- Based on total APE, non-par savings now forms 28% of total mix while protection +annuity business contributes 19% versus 26% and 18% respectively a year ago

- Commission ratio decreased by ~ 30 bps YoY to 4.3% but was up 10 bps QoQ. Opex ratio (management expense) ratio increased ~20 bps QoQ to 12.5%

- HDFC Life settled around 3.9 lakh claims. Gross and net claims amounted to Rs. 5804 crore and Rs. 4328 crore respectively. PAT for the quarter was at Rs. 357.5 crore, up 12.4% YoY, and was higher than our estimate, helped by change in actuarial liabilities

- New business margin for FY22 came in at 27.4% as against 26.1% YoY

- AUM was at Rs. 204170 crore, up 17% YoY. Debt to Equity mix in AUM was at 63:37 with ~98% of debt investments in G-secs and AAA bonds

- Persistency ratio largely remained buoyant with 13th month persistency at 86.8% and 61st month persistency at 54.4% versus 84.5% and 51.1% in the last quarter, respectively

- Individual WRP growth of 16% resulting in industry market share expansion by 10 bps to 9.3%

- Indian Embedded Value stood at Rs. 30048 crore as of March 2022, up 13% YoY. Solvency ratio was at 1.76x

We would be shortly coming out with a detailed report.

Shares of HDFC Life Insurance Company Limited was last trading in BSE at Rs. 549.50 as compared to the previous close of Rs. 540.25. The total number of shares traded during the day was 125861 in over 5017 trades.

The stock hit an intraday high of Rs. 555.85 and intraday low of 538.00. The net turnover during the day was Rs. 68725613.00.