HDFC Life Insurance Company (HDFCLIFE) Q4 17/18 earnings summary

Executive summary

• FY 2018 total premium grew 21% to ₹23,564 Cr; new business premium rose 32% to ₹11,350 Cr, while Indian GAAP PAT increased 24% to ₹1,109 Cr.

• New business margin reached 23.2%, up from 22.0%; AUM rose 16% to ₹1,06,603 Cr and embedded value increased 22% to ₹15,216 Cr.

• Listing on NSE and BSE on Nov. 17, 2017 was a major milestone; the IPO was an offer for sale by promoters.

Financial highlights

• Total premium ₹23,564 Cr, up 21%; individual first-year regular premium ₹4,622 Cr, up 29%; individual renewal premium ₹12,130 Cr, up 13%.

• Total new business premium rose 32% to ₹11,350 Cr; individual APE grew 31% to ₹4,887 Cr and group new business premium increased 22%.

• Indian GAAP PAT rose 24% to ₹1,109 Cr; total investment income fell 22% to ₹8,875 Cr, mainly on lower unit-linked mark-to-market gains, with corresponding reserve effects.

• Reported basic EPS was ₹5.53 vs. ₹4.47; diluted EPS was ₹5.50 vs. ₹4.44.

Outlook and guidance

• Strategic priorities: protection, technology-led customer journeys, deeper partner integration, balanced products and profitable growth; no specific numerical FY 2019 guidance stated.

• Industry prospects supported by financialisation of savings, digital adoption and government focus on financial inclusion and social security; competitive intensity expected to remain high.

• HDFC Pension AUM exceeded ₹2,560 Cr with over 20% private pension market share; international reinsurance operations are targeting further GCC and MENA expansion.