HDFC Life Insurance Company (HDFCLIFE) Q4 09/10 earnings summary

Executive summary

• FY10 total premium rose 26% YoY to ₹7,005.10 crore; assets under management reached ₹20,767 crore, while the shareholders’ account recorded a loss of Rs 2,751,844 thousand.

• Policyholder operations generated a surplus of Rs 1,909,409 thousand, up from Rs 1,666,398 thousand in FY09.

Financial highlights

• First-year premium was ₹2,983.89 crore and renewal premium ₹3,747.59 crore; total premium increased from ₹5,564.69 crore in FY09 to ₹7,005.10 crore in FY10.

• Net loss narrowed to Rs 2,751,844 thousand from Rs 5,029,631 thousand; basic and diluted EPS improved to Rs (1.51) from Rs (3.28).

• Total AUM reached ₹20,767 crore, including ₹15,660.90 crore in unit-linked assets and ₹5,106.10 crore in conventional products and shareholder funds.

• Investment income in the policyholders’ account was Rs 57,228,189 thousand, versus a loss of Rs 17,231,361 thousand in FY09; the current-year figure included a Rs 42,832,799 thousand fair-value revaluation gain.

Outlook and guidance

• First Advantage, a graduate recruitment initiative, was intended to meet future staffing needs; the stated ambition was to source 20% of talent through the programme.

• Revised unit-linked products were introduced following IRDA caps on product charges, replacing some existing versions.