HDFC Life sees 12% rise in Q1FY20 - premium growth at 29%, mutual fund biz shows 18% surge

The HDFC Life has presented its June 2019 (Q1FY20) quarter result, where the company recorded a growth of 12% to Rs 425 crore compared to Rs 380 crore posted a year ago same period. Interestingly, the total premium business showed stellar performance in this quarter, rising by 29% to Rs 6,536 crore versus Rs 5,058 crore in Q1FY19. Mutual fund industry also added good result for HDFC Life, as AUM business surged by 18% to Rs 1,29,581 crore in Q1FY20 versus Rs 1,09,634 crore in Q1FY19. Post result announcement, HDFC Life shares saw huge jump on stock exchanges, by touching an intraday high of Rs 501.30 per piece. At around 1417 hours, HDFC Life share was trading at Rs 495.35  per piece up Rs 4.85 or 0.99% on Sensex. 

Talking about the Q1 performance, Vibha Padalkar, MD & CEO said “In line with our stated strategy, we continue to focus on providing the best value proposition to our customers, partners and shareholders and generating profitable growth. We have recorded stellar topline growth, with strong traction witnessed across savings, protection and retirement solutions whilst maintaining our focus on profitability. Our diversified distribution mix coupled with product innovation has helped us address niche customer segments and emerging profit pools."

Padalkar added, "We have witnessed strong growth in key indicators of economic value generated by our business viz. New Business Margins at 29.8% and Operating Return on Embedded Value at 19.9%. We have stepped up our efforts within the protection and retirement space, which we expect would fuel our growth across market cycles. Our digital capabilities put us in a good position to maximize the tremendous potential of the life insurance industry.”

Other key highlights for the quarter ending June 30, 2019:

Private Market Share: Expanded in the private sector to 25.1% as compared to 22.3% in Q1 FY19, based on total new business received premium. Consistently ranked amongst the top 3 private players in individual and group segments with market share of 17.5% based on Individual WRP (YoY increase of 420 bps) and remained steady at 30.0% based on Group business (on received premium) during Q1 FY20.

New Business Lives and Sum Assured: Total number of lives insured grew by 26% to 1.3 Cr during Q1 FY20. Overall new business sum assured also saw an increase of 46% to Rs 1.8 lakh Cr during the same period.

Product Portfolio:  Term protection APE has increased to Rs 304 Cr during Q1 FY20, from Rs 187 Cr in the corresponding period last year, representing a strong growth of 63%. Annuity APE was at Rs 70 Crs in Q1 FY20, growing by 69% over Q1 FY19. Protection and annuity businesses comprise a substantial 26% and 18% of total new business premium respectively.

Distribution Mix: Diversified distribution mix is demonstrated by the wide access to the customers of our 270 plus partners, including more than 40 new-ecosystem partners as on June 30, 2019. This is further supplemented by our 421 branches spread across the country.

Assets Under Management: Have become one of the leading fund managers in India with an AUM of around Rs. 1.3 lakh Cr; the debt:equity mix as on June 30, 2019 is 62:38. Almost 96% of debt investments are in GSecs and AAA bonds as on June 30, 2019.