HDFC Life Q2 Results FY2023, Net Profit at Rs. 326.24 crores

On 21st October 2022, HDFC Life announced its second quarter results for the period ending 30th September 2022. 

Q2FY23 Performance updates:

- Net premium earned was Rs. 13,110.91 crores with a growth of 14.56% YoY.
- The insurer reported the total income at Rs. 22,973.47 crores, with a drop of 2.35 % YoY.
- The PBT was at Rs. 327.31 crores, seeing a growth of 18.61 % YoY
- The Net profit was reported at Rs. 326.24 crores
 

Business Highlights:

- New Business Premium witnessed a yearly growth of 5% to Rs. 11,325 crores in H1-FY2023.
- Annuity Annual Premium Equivalent registered a robust growth of 44%
- Protection APE grew by 13.2% YoY 
- The embedded value of the merged entity is 36,016 Crore.
- Solvency ratio at 210% on the back of equity capital infusion
 
Commenting on the results, Ms. Vibha Padalkar, MD & CEO said “As you may be aware, our subsidiary Exide Life merged with HDFC Life on October 14th, pursuant to the receipt of the final approval from IRDAI. The entire transaction – right from the announcement of the deal in September 2021 followed by the acquisition in January 2022 and the eventual merger – was completed in less than 14 months. I would like to thank our regulator – IRDAI and all other authorities involved in the M&A for their encouragement, support and timely approvals. 

I would also like to take this opportunity to congratulate Suresh Badami, currently our Executive Director & Chief Distribution Officer, on his elevation to Deputy Managing Director. We look forward to continue building an industry-leading and customer-centric franchise. 

On the business front, we continued to maintain a steady growth trajectory, growing by 11% in terms of total APE in H1 FY23 on a pre-merger basis i.e. excluding Exide Life. We have grown in line with the industry and faster than listed peers this quarter which also led to market share improvement from 14.6% in Q1 to 15.0% in Q2 on a pre-merger basis. We have maintained our market leadership position as a top three life insurer across individual and group businesses. Market share in terms of individual WRP for the merged entity i.e. including Exide Life stands at 16.1% amongst private players and 10.2% within overall industry. 

New business margin for H1 is 27.6%, up from 26.4% in H1 FY22, on a pre-merger basis. There has been margin expansion for both the existing business i.e. pre-merger and the acquired Exide Life business in H1 FY23. We are close to achieving our aspiration of maintaining FY22-margin neutrality for the combined entity, having delivered 26.2% NBM, compared to 26.4% in H1 FY22. The value of new business has grown by 16% on a pre-merger basis and is at Rs. 1,258 Crore for H1. 

Our pre-merger embedded value as on Sep 30, 2022, is 33,015 Crore, with an operating return on embedded value of 17.7% for H1 FY23. The embedded value of the merged entity is 36,016 Crore. Profit after tax on premerger basis stood at Rs. 682 Crore, a YoY increase of 18% during H1 FY23. This was aided by strong growth of 35% in existing business surplus. 

We continue to be excited about the growth prospects of the industry, on the back of renewed support and encouragement from the regulator. We are enthused by the regulator’s vision of significantly improving the global ranking of Indian life insurance from its current no. 10 position to no. 6 and look forward to being a meaningful contributor in this journey.”