- 24 Jan 2022
- ICICIdirect Research
HDFC Life reports mixed performanceHDFCLIFE - 576 Change: -5.80 (-1.00 %)
News: For HDFC Life, Gross premium growth remained healthy at 27% YoY to Rs.12255 crore, led by healthy traction in renewal at Rs.5543 crore (up 21% YoY) and new business premium at Rs.6712 crore (up 33% YoY). On APE basis, premiums increased 20.4% YoY to Rs.2576 crore. Commission ratio decreased by ~ 50 bps YoY and 30 bps QoQ to 4.2%. Opex ratio (management expense) ratio increased ~70 bps QoQ to 12.3%. PAT for the quarter was at Rs.274 crore, up 3% YoY, and lower than our estimate. AUM was at Rs.1,94,738 crore, up 18% YoY.
Views: In our view, Premium growth for HDFC Life have remained healthy led by growth in New business premium. The Total revenue reported a muted number due to significant drop in Income from investment, which was further partially offset by lower expenses due to decrease in actuarial liabilities. As a result, PAT growth remained muted and below our estimate.