HDFC LIFE conducted their Q2 FY 23 conference call on 21st October 2022.
Here are the key takeaways…
Here are the key takeaways…
Business Overview
- Company was able to generate strong sales growth during the quarter.
- Their Annuity APE grew by 44% in last 6 month.
- As compared to their peers company did perform better then it’s peers improving their market share up by 0.5% percentage.
- Company was able to generate strong sales growth during the quarter.
- Their Annuity APE grew by 44% in last 6 month.
- As compared to their peers company did perform better then it’s peers improving their market share up by 0.5% percentage.
- Company has huge potential to grow in the under-penetrated domestic as well as global market.
- Company has also elevated Suresh Badami as deputy managing director. His entry has let good growth in business key areas.
- Company has been able to get good value in their new business premium, as well as annuity new business.
- At march,31st 2022 AUM stood around 2000 cr.
- Company has been able to get good value in their new business premium, as well as annuity new business.
- At march,31st 2022 AUM stood around 2000 cr.
- For the given period their CP volumes displayed strong increment in growth compared to last year.
- For product mix, under total APE space non par savings and par savings contributes about 57% and Under NBP space major holdings are with protection and annuity products.
- For product mix, under total APE space non par savings and par savings contributes about 57% and Under NBP space major holdings are with protection and annuity products.
- The company has also smoothen the customer journey and simplified the underwriting part.
- Home based risk assessment service are issued and have aided the home medical initiatives not just in India but other 20 countries as well.
- Home based risk assessment service are issued and have aided the home medical initiatives not just in India but other 20 countries as well.
- Under the ALM approach, the company tend to immunise overall portfolio to manage parallel shift in yield curve.
- Not just that under risk management framework product design and residual strategies are altered for better management.
- Not just that under risk management framework product design and residual strategies are altered for better management.
Financials
- Though with strong sales growth there has been a decline in the operating profits and margins compared to last quarter.
- Solvency ratio for the company stood around 200% plus based on capital infusion.
- Though with strong sales growth there has been a decline in the operating profits and margins compared to last quarter.
- Solvency ratio for the company stood around 200% plus based on capital infusion.
- New business value stands around 12.9 Bn post merger with margin at 26%.
- Their Shareholders surplus stood around 2.4 Bn during this 1 half of FY 23.
- Their Shareholders surplus stood around 2.4 Bn during this 1 half of FY 23.
- Their IEV levels stand around 330 levels including the unwind space, VNB space, decline in the economic space and addition from dividend and capital infusion.
- Post merger this level stands around 360 levels.
- Post merger this level stands around 360 levels.
- More focus is been build upon ULIPs, Par and Non par saving plans Under earlier years of life and annuity is pitched to the once in later stage.
- There we’re complaints that company receive related to their product pricing.
- There we’re complaints that company receive related to their product pricing.
- In terms of channel contribution towards revenue as based on Individual APE based the major representation came from agency’s with 56% levels followed by brokers and direct sales.
Expansions
- Exide life merger got completed under 14 months with strong performance in NBM: 27.6%.
- The margin expansion was been witnessed by the firm both pre and post merger.
- New opportunities are been tapped to create a new profit pool.
- Exide life merger got completed under 14 months with strong performance in NBM: 27.6%.
- The margin expansion was been witnessed by the firm both pre and post merger.
- New opportunities are been tapped to create a new profit pool.
- Distribution channels are been updated more towards need based selling.
- More focus towards technology is been made to deliver consistent performance.
- More focus towards technology is been made to deliver consistent performance.
- The company also aspire to reduce the NBM gap in FY24 through optimised geographical pick up.
- Rationalising reductant spending’s and enabling-more digital operating to scale.
- Rationalising reductant spending’s and enabling-more digital operating to scale.
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