HDFC Standard Life Insurance Report Q4 FY18


HDFC Standard Life reported its annual earnings for FY18, and it showed a robust incline owing to strong growth in premiums and improvements in margins.

HDFC Standard Life report for Q4 of FY18

HDFC Life, one of the top private insurers in India, reported new business premium growth at 32% y-o-y, which outpaced the y-o-y growth of renewal premiums which stood at 11%, bringing the total premium growth to 20% y-o-y.

Key metrics (INR billion) YoY growth FY18 FY17
Renewal premium 11% 122.1 108.2
New business premium 32% 113.5 86.2
Total premium 20% 235.6 194.5
Individual APE 19% 48.9 37.4
Profit after tax 16% 11.1 8.9
-Shareholder surplus 38% 2.6 1.4
-Policyholder surplus 11% 8.5 7.5
Assets under management 20% 1066.0 917.4
Embedded value 22% 152.2 124.7


In terms of business mix, the share of ULIPs (unit-linked insurance plans) remained comfortably within the guided range of the management which was 50-60%. The share increased from 53% in FY17 to 57% in FY18 (based on individual APE). As for the pure term insurance business, the share rose from 21.8% in FY17 to 25.9% in FY18, showing an improvement based on the new business premiums. This pattern reiterates HDFC Life’s continuous focus on the protection business which has relatively high margins.

HDFC increased the share of ULIPs, but despite this, the new business margins saw an improvement of 1.2%, i.e., 22% in FY 17 to 23.2% in FY18. Owing to investments in product innovations, digital platforms and expanding distribution channels, the insurer had reported a 90bps increase in operational expenses, settling at 13.5%.

Overall the return ratios of the company were healthy and strong with the Return on Equity (RoE) at 26% and Return on Embedded Value (RoEV) at 21.5% for the fiscal year 2018. The solvency ratio of the company stayed put at 192%.

HDFC Life debuted on the bourses in November 2017. It’s stock has seen a rise of 70% since then. In the year 2018, the stock has seen a jump of 27%.

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