One of the top life insurance providers in India, HDFC Life announced its results for the first quarter of FY23 on 19th July 2022. As per the report, the net worth of the company increased by a whopping 76% YoY (year on year) to Rs. 15,427 crores in Q1 FY23 from Rs. 8,778 crore in Q1 FY22.
The Profit After Tax (PAT) increased 21% YoY to Rs. 365 crore in Q1 FY23, a jump from Rs. 302 crore in Q1 FY22. The operating return on EV (embedded value) increased to 16.5% in the first quarter of FY23, from 14.4% in the first quarter of the previous year.
The individual APE (annualised premium equivalent) increased 18% YoY to Rs. 1,548 crore in the quarter ended 30 June 2022, from Rs. 1,306 crore in the same quarter of the previous year. Showing a consistent growth trajectory, the total APE increased 22% to Rs. 1,904 crore in Q1 FY23, from Rs. 1,561 crore in Q1 FY22. To add to this, there was a 23% YoY increase in the total premium to Rs. 9,396 crore in Q1 FY23 from Rs. 7,656 crore in Q1 of the previous year. With this, the company maintained a place in the top 3 ranks amongst life insurers.
The total assets under management of the company jumped 10% to Rs. 2,00,123 crore in Q1 of the current year, from Rs. 1,81,272 crore in Q1 of the previous financial year. The AUM has a debt to equity mix of 65:35. Of the debt investments, around 99% were in Government securities and AAA bonds.
New business margin of HDFC Life increased to 26.8% in Q1 FY23 from 26.2% in Q1 FY22. This was attributed to a profitable product mix and growth in protection business.
Commenting on the Q1 FY23 performance, Ms. Vibha Padalkar, MD & CEO said “We continue to maintain a consistent growth trajectory, growing by 22% in terms of APE in Q1 FY23. This has enabled us to maintain our market leadership as a ‘Top 3 life insurer’ across individual and group business. Our product mix remains balanced, with non-par savings at 35%, participating products at 30%, ULIPs at 25%, individual protection at 5% and annuity at 6%, based on individual APE.”
To read the RA disclaimer, please click here
Research Analyst: Bavadharini KS