23 July 2018 HDFC Life (HDFCLIFE) delivered a steady quarter, with total premium increasing 37% YoY (62% YoY growth in NBP). Premium growth (APE terms) remained strong, with individual APE growing 15% YoY and overall APE increasing 26% YoY. The share of protection business in total APE improved further to 18% (32% in un-weighted NBP). The share of protection business in individual APE also increased sharply to 8% v/s 5% last year. This enabled 100bp QoQ expansion in new business margin to 24.2% and drove 43% YoY growth in VNB to INR2.5b. Renewal premium growth also recovered to 16% YoY (13% YoY in FY18). The share of ULIPs in individual new business APE moderated to 54% from 57% in FY18, while the composition of non-par savings and protection business increased. HDFCLIFE continues to see significant potential in the protection business and aims to improve the product mix, which should further support profitability.