HDFC Life Insurance Company (HDFCLIFE) Q4 08/09 earnings summary

Executive summary

• FY09 premiums rose 14.53% to Rs 5,564.69 crore; policyholder technical surplus increased to Rs 166.64 crore from Rs 70.38 crore, while shareholder net loss widened to Rs 502.96 crore from Rs 243.51 crore.

• Sum assured in force reached Rs 57,158 crore; assets under management were Rs 10,595 crore at March 31, 2009.

Financial highlights

• Total premium Rs 5,564.69 crore vs Rs 4,858.56 crore; first-year premium Rs 2,651.11 crore and renewal premium Rs 2,913.58 crore.

• Policyholder technical account investment income was a net loss of Rs 1,723.14 crore, including Rs 1,820.65 crore of transfer/gain on revaluation or fair-value change reported as a loss.

• Technical-account surplus rose to Rs 166.64 crore from Rs 70.38 crore; net benefits paid increased to Rs 681.27 crore from Rs 501.46 crore.

• Shareholder loss after tax was Rs 502.96 crore vs Rs 243.51 crore; EPS was negative Rs 3.28 vs negative Rs 2.42.

• Adjusted for the accounting-policy changes, the debt-security change reduced FY09 revenue-account charges by Rs 4.96 crore; fair-value treatment of listed equities reduced revenue-account and P&L charges by Rs 29.69 crore and Rs 7.76 crore, respectively.

Outlook and guidance

• Licensed Financial Consultants exceeded 207,000 at year-end vs 144,000 a year earlier; the enlarged trained agency force was positioned to support the coming year.

• Distribution expansion continued with 23 offices opened, bringing the network to 595 offices serving more than 720 cities and towns.

• Solvency was 260% at March 31, 2009, above the 150% regulatory minimum maintained throughout the year.