HDFC Life Insurance Company (HDFCLIFE) Q4 10/11 earnings summary

Executive summary

• FY11 total premium grew 29% to ₹9,004 crore; first-year premium rose 21% to ₹4,059 crore and renewal premium grew 36% to ₹4,945 crore.

• Annual Indian GAAP loss narrowed to ₹99 crore from ₹275 crore in FY10, while individual business conservation improved to 81% from 72%.

• Despite regulatory changes and a contracting market, ranked #1 among private life insurers in individual new business weighted received premium in H2 FY11.

Financial highlights

• Total premium, including group business, rose 29% YoY to ₹9,004 crore; sum assured in force increased to ₹98,917 crore from ₹72,610 crore.

• First-year premium income increased 21% YoY to ₹4,059 crore; renewal premium collected rose 36% to ₹4,945 crore.

• Indian GAAP loss narrowed to ₹99 crore from ₹275 crore; basic and diluted EPS improved to -₹0.50 from -₹1.51.

• AUM reached ₹27,177 crore at Mar 31, 2011, including ₹20,323 crore in unit-linked and ₹6,175 crore in conventional products and shareholder funds.

Outlook and guidance

• Plans to build on FY11 performance and outperform industry growth in FY12, while adapting to the sector’s “new normal.”

• FY12 persistency initiatives planned include midterm benefit illustrations, advanced analytics and greater last-mile customer engagement.

• Distribution plans emphasize reinforcing existing relationships while broadening bancassurance, broker, direct and loyalty channels.