HDFC Life Insurance Company (HDFCLIFE) Q4 06/07 earnings summary

Executive summary

• First-year premium income rose 58% to Rs 1,624.23 crore; cumulative sum assured increased to Rs 67,192.97 crore from Rs 47,730.40 crore.

• More than 523,000 policies were issued, covering over 877,000 lives; policyholders’ funds generated a surplus of Rs 33,970 thousand.

Financial highlights

• Gross premium income was Rs 28,558,656 thousand vs Rs 15,699,126 thousand; net premium income was Rs 28,226,248 thousand vs Rs 15,469,501 thousand.

• Shareholders’ net loss narrowed to Rs 1,255,611 thousand from Rs 1,287,572 thousand; basic EPS was (Rs 1.83) vs (Rs 2.92).

• Policyholders’ investment income fell to Rs 2,256,641 thousand from Rs 3,718,444 thousand, including realized losses of Rs 411,914 thousand.

• Total assets rose to Rs 54,419,467 thousand from Rs 29,990,896 thousand; assets under management reached Rs 4,976 crore vs Rs 2,554 crore.

Outlook and guidance

• Added offices, technology, staff and financial consultants to support growth momentum; many sales employees recruited late in the year were expected to become fully productive in the coming year.

• A larger trained agency force was expected to support the next year after consultant numbers increased to over 74,000 from over 33,000.