- 19 Apr 2024
- ICICI Securities
HDFC LIFE INSURANCE REPORTED DE-GROWTH IN NEW BUSINESS PREMIUM (NBP) AT 9.7% YOY
News: HDFC Life Insurance reported de-growth in new business premium (NBP) at 9.7% YoY, however, excluding impact of high-ticket inflow in Q4FY23 amid tax amendments, APE growth remained at 11% YoY. Protection and annuity business remained primary contributor forming ~49% of incremental NBP. Renewal business continued to remain robust with healthy persistency. VNM (Value of new business) margin stood at 26.3%, lower on YoY basis, due to higher growth in linked business. Embedded value stood at ₹ 47468 crore, with RoEV at 17.5%. AUM increased 22% YoY to ₹ 292220 crore.
Views: Higher growth in linked business impacted margins in FY24. Strategy to focus on new customer accretion and improve geographical penetration bodes well. Going ahead, stabilization of product mix could aid margins, however, business growth remains a priority ahead.
Impact: Neutral