HDFC Life Q2 FY23 Results Key Highlights

  • Q2 Net Profit up 19% and Value of New Business growth (VNB) 10%
  • 4% growth in total Annual Premium Equivalent (APE)
  • VNB Margin increased to 28.3% Vs 26.6% YoY
  • In H1 FY23 Solvency stands at 210%
  • In H1 Market Share of merged entity in Overall New Business Premium reduced to 19.8% from 22.23%
  • HDFC Pension as on 30th Sep 2022 has market share of 39.3% from 35.9% YoY and Market Leader with AUM Rs.35146 Cr growth of 57%
  • Overall H1 FY23 Performance

  • Indian Private Life Insurance Sector has grown at 2 years CAGR of 14% during covid years.
  • Consistent Growth

  • Value of New Business (VNB) – Present Value of future earning from policies sold during the year. Reflects additional earning expected to be generated from new policies issued
  • VNB Margins – Profit Margins on policies issued during a period
  • Embedded Value (EV)– Total value of business for its shareholders. Sum of Net Asset Value (funds accumulated from past business) and present value of future earnings from policies in force. Life insurance companies valued at Price to EV
  • Annual Premium Equivalent (APE): APE is equal to total value of regular or recurring premiums plus 10% of new single premium written in the period


HDFC Life Investor Presentation

HDFC Life Concall Recording


Other Useful Info

  • Peers Comparison Embedded Value

  • Price to Embedded Value Multiple

Source: Annual Reports and Investor Presentations of respective companies