HDFC Life Insurance Company (HDFCLIFE) Q4 22/23 earnings summary

Executive summary

• FY23 total premium reached ₹57,533 crore; individual WRP grew 27% YoY, with 16.5% private-sector market share and 10.8% overall share. WRP growth includes Exide Life in the prior-year comparison.

• PAT was ₹1,360 crore, up 13% YoY; VNB rose 37% to ₹3,674 crore, with a 27.6% new business margin.

• Embedded value was ₹39,527 crore, operating return on EV 19.7%, AUM ₹2.4 lakh crore and solvency 203% at March 31, 2023.

Financial highlights

• Gross premium income was ₹57,533 crore versus ₹45,963 crore; FY23 includes Exide Life, so reported YoY comparisons are not comparable.

• Net premium income was ₹56,764 crore, up 25%; total income was ₹70,609 crore and total expenses ₹69,178 crore.

• PAT was ₹1,360 crore versus ₹1,208 crore, up 13%; basic EPS was ₹6.38 versus ₹5.91.

• Renewal premium rose 30% to ₹28,448 crore; new business premium reached ₹29,085 crore, with reported YoY growth not comparable due to the merger.

• Operating expenses were ₹8,500 crore; operating expenses to total premium increased to 14.8% from 12.3%, reflecting growth investment and Exide Life expenses.

Outlook and guidance

• FY24 VNB expansion is expected through APE growth faster than industry while maintaining margins close to FY23 levels; retail protection outlook is positive.

• Project INSPIRE is planned to receive investment over FY24 and FY25 to modernize technology, integrate partners and improve customer experience and channel productivity.

• Medium- to long-term opportunities are expected in protection, retirement and long-term savings; strategy emphasizes broader distribution, product innovation and deeper reach in tier 2 and 3 markets.