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HDFC Life Q4 FY22 Results

26 April 2022
3 minutes

HDFC Life, a leading private life insurer in India, declared its quarterly results for the March quarter of FY22. The results showed a 58.6% YoY increase in the Profit After Tax (PAT) to Rs 506 crores compared to the same period last year. On a sequential basis, the PAT jumped 84% to Rs 506 crore. This jump in profit might be attributed to the growth in the first-year premium collection. It jumped 20.4% YoY to Rs 2,877 crores in the quarter under review. Renewal premium collection jumped 31.1% YoY and 36% QoQ to Rs 2,877 crore in the quarter under review.

There was a jump of 21.14% every year in the net premium income which amounted to Rs 15,624 crores. The company’s commission payout increased by 35.3% QoQ and 14.5% YoY to Rs 686 crore in the March 2022 quarter.

More about HDFC Life Q4

The company’s solvency ratio reduced to 176% from 190% in the previous quarter and 201% in the year-ago period. 

HDFC Life announced a final dividend of Rs 1.70 per share. After the end of the financial year on March 31, 2022, HDFC Life ranks in the second position in terms of overall new business. The company’s claim settlement ratio was posted at 99.6% for the concluded financial year.

Highlights of HDFC Life Q4 Results

  • PAT up 58.6% YoY, 84% QoQ to Rs 506 crore in the quarter under review
  • First-year premium up 20.4% YoY, 36% QoQ to Rs 2,877 crore in the March 2022 quarter
  • Renewal premium up 50% QoQ, 31% YoY to Rs 8,325 crore
  • Individual Weighted Received Premium (WRP) WRP growth of 16% resulting in industry market share expansion by 10 bps to 9.3%
  • 47% growth in protection new business premium; 24% growth in annuity business
  • AUM crossed Rs 2 trillion mark, clocking 17% YoY growth
  • The new business margin for FY22 was 27.4%, vs 26.1% for FY21
  • EPS up at Rs 2.48 from Rs 1.36 in the previous quarter and Rs 1.58 in the year-ago period

HDFC Life Results – Misses

  • Investment income was down by 6.6% YoY to Rs 168 crore in the quarter under review from Rs 271 crore in the year-ago period

What the Management says

Ms Vibha Padalkar, MD & CEO said that the company clocked a growth of 16% in individual WRP (weighted received premium) in FY22. Its market share was 14.8% and 9.3% in the private and overall sectors respectively. 

Despite very trying times during the 2-year pandemic, HDFC Life’s 2-year CAGR of 17% was almost 2 times industry growth of 9%.

Overall protection grew by 24% in terms of APE and 47% in terms of new business premium. This was largely led by a 55% growth in credit life new business premium, on the back of higher disbursements. On the retirement side, the annuity business recorded a 24% growth vis-à-vis industry growth of 3%. Annuities now contribute over a fifth of our new business premiums for the company.

Other things to know about HDFC Life

  • HDFC Life’s P/E ratio is at 83.83 against the industry average of 24.24.
  • The company’s P/B ratio is at 13.20 against the industry average of 2.20.
  • The company’s dividend yield is at 0.36% against an industry average of 0.56%

To read the RA disclaimer, please click here
Research Analyst: Bavadharini KS

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