Equity Analysis

The value of new business (VNB) grew by 22% to Rs 361 crore. New business margins (post overrun) grew to 24.0% in 9MFY2019 from 22.1% 9MFY2018.

1. The company has continued to maintain a balanced product mix with ULIPs contributing 59%, Par 20% and Non par 21% of the Individual APE.
2. The company has maintained leadership position in terms of total new business received premium with a market share of 21.0% in the private sector compared to 18.4% in the same period last year. Consistently ranked amongst the top 3 private players in individual and group segments with market share of 12.6% based on Individual WRP and 28.2% based on Group business (on received premium) during 9MFY19.

Total number of lives insured grew by 71% to Rs 3.48 crore during 9M FY19. Overall new business sum assured also saw an increase of 27% to Rs 406943 crore end December 2018.

In line with our stated strategy, the company continues to maintain a balanced product mix with focus on protection business. Protection APE has increased from Rs 407 crore for 9MFY18 to Rs 673 crore for 9MFY19, recording a robust increase of 66%. Protection business comprises a healthy 28.1% of total new business premium.

The company has a diversified distribution mix, backed by strong presence across the country through 413 HDFC Life offices, along with wide access to the branches of our 209 bancassurance and 37 non-traditional ecosystem partnerships as on 31 December 2018. Crossselling to group customers formed 8.4% of the individual new business policies sold during 9MFY19.

The company is amongst the leading fund managers in India with an AUM of more than Rs 117701 crore, the debt:equity mix as on 31 December 2018 is 62:38. Over 96% of debt investments are in AAA rated and Government bonds as on 31 December 2018.

3. The persistency ratios continue to trend strongly across most cohorts. While 13th month persistency healthy at 86% (9MFY18: 87%), 61st month persistency was at 50% compared to 53% for the same period last year.

Networth increased by 31% to Rs 5690 crore end December 2018, while the company has maintained stable solvency ratio at 191% end December 2018.

4. Embedded Value (IEV methodology) stood at Rs 17397 crore and Rs 86.4 per share at end December 2018. Annualised Operating return on Embedded Value during the period was (EVOP/Opening Embedded value) 19.7% in 9MFY2019.
5. YTD Financial Performance:
6. HDFC Standard Life Insurance Company has posted 20% growth in the net profit to Rs 912.79 crore in 9MFY2019. Total Premium increased 29% to Rs 18859.56 crore in 9MFY2019, aided by healthy new business growth of 41% and 18% in renewal business. The persistency ratios continued to trend strongly across various cohorts. The value of new business (VNB) grew by 25% to Rs 971 crore, while the new business margins grew to 24% for 9MFY2019.

HDFC Standard Life Insurance Company: Standalone Policyholders Account

HDFC Standard Life Insurance Company: Standalone Shareholders Account

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