HDFC Life Annual Report 2023-24: Growth & Strategic Highlights

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Strategic Highlights

  • Market Navigation: Effectively navigated through sectoral changes with a focus on increasing volumes and retail protection, alongside significant inroads into Bharat (rural markets).
  • Tier 2/3 Market Growth: Achieved a 13% growth in Tier 2/3 markets, surpassing the industry's average growth rate.

Financial Performance

  • Annualised Premium Equivalent (APE) Growth:

     

  • Full year: 11% increase.
    • Q4: 20% increase, adjusted for a one-off Rs. 1,000 crore business due to the previous year's Union Budget changes.
    • Profit After Tax (PAT): Grew by 15%.
  • Sum Assured: Increased by 47%, with retail protection growing by 27%.
  • Annuity and Protection: Nearly half of the new business premium.
  • Operating Return on Embedded Value (ROEV): 17.5%.
  • Indian Embedded Value: Rs 47,468 crore.
  • Proposed Dividend: Rs 2 per share.

Operational Achievements

  • Renewal Collections: Increased by 18% YoY, reflecting ongoing customer trust.
  • Persistency Rates:
    • 13th month: 87%
    • 61st month: 53%
  • Product Launches: Significant year for new products, including the successful launch of Click Achieve, a DIY non-par savings solution.

Business and Financial Metrics

  • New Business Margins: 26.3%.
  • Value of New Business: Rs. 3,501 crore, with a 2-year CAGR of 14%.
  • Profit Increase: Driven by an 18% increase in profit emergence from the back book.
  • Solvency Ratio: Healthy at 187%.

Leadership Changes

  • Resignation of Mr. Deepak Parekh: Stepping down as Chairman and Non-Executive Director effective April 18, 2024, after 24 years of service.
  • Appointment of Mr. Keki M Mistry: Unanimously approved as the new Chairman of the Board, effective immediately after Mr. Parekh's resignation.

Awards and Recognition

Award for Best Organization for Women in 2024: Awarded by The Economic Times, recognizing HDFC Life’s commitment to diversity, equity, and inclusion.

Explore: HDFC Life Share Price

Key Financial and Actuarial Metrics

Metric

FY24

FY23

Year-over-Year Change

Individual APE

11,509

11,401

1%

Total APE

13,291

13,336

0%

New Business Premium (Indl + Group)

29,631

29,085

2%

Renewal Premium (Indl + Group)

33,445

28,448

18%

Total Premium

63,076

57,533

10%

Assets Under Management

2,92,220

2,38,782

22%

Profit After Tax

1,569

1,360

15%

Indian Embedded Value

47,468

39,527

20%

Value of New Business

3,501

3,674

-5%

Key Financial Ratios and Market Metrics

Additional Read: Quarterly Results

Metric

FY24

FY23

New Business Margins

26.3%

27.6%

Operating Return on EV

17.5%

19.7%

Total Expenses / Total Premium

19.4%

19.8%

Solvency Ratio

187%

203%

13M / 61M Persistency

87%/53%

87%/52%

Market Share

Individual WRP(Overall industry)

10.4%

10.8%

Overall New Business Premium Market Share (Overall industry)

8.0%

7.9%

Product Mix by Indl APE (UL / Non-par savings / Annuity / Protection / Par)

35/30/6/5/23

19/45/5/4/27

Distribution Mix by Indl APE (Corporate Agents / Agency / Broker / Direct)

65/18/6/11

56/20/11/13

Additional Read: Annual Results

Additional Notes:

  • Percentages may not total 100% due to rounding.
  • The normalised Individual APE growth is 11%, excluding a one-off Rs 1,000 crore from FY23 related to Union Budget changes.
  • FY24 data pertains to the 11-month period.

About HDFC Life Insurance Limited Ltd

Founded in 2000, HDFC Life stands as a premier provider of long-term life insurance solutions in India. The company is publicly listed and offers a comprehensive array of products tailored to meet a variety of customer needs including Protection, Pension, Savings, Investment, Annuity, and Health. HDFC Life boasts a diverse portfolio, featuring over 80 individual and group insurance products along with optional riders. This extensive range is designed to address the varied requirements of its clientele.

HDFC Life has significantly expanded its presence across India. It operates a broad network of branches complemented by an extensive array of distribution touchpoints. These have been bolstered through numerous new partnerships and tie-ups. The company maintains a robust distribution network that includes over 300 partnerships with banks, non-banking financial companies (NBFCs), microfinance institutions (MFIs), small finance banks (SFBs), brokers, and new ecosystem partners.

HDFC Life prides itself on a strong foundation of financial consultants who are integral to providing personalised service and expert advice to its customers. Through strategic expansion and a focus on comprehensive life insurance solutions, HDFC Life continues to enhance its market footprint and deliver value to its policyholders.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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