28 April 2020 HDFC Lifes (HDFCLIFE) results reflected weak business trends due to the COVID-19 led lockdown and volatile markets. 4QFY20 APE growth declined 5% YoY led by ULIPs while protection business growth was strong at 28% QoQ. Persistency ratio improved across 13-month/61-month cohorts to ~90%/~55% (v/s ~87%/~52% in FY19). The share of the protection business in 4QFY20 improved further to 18.5% in total APE (17.2% in FY20). We have cut our EPS estimates by 14%/8% for FY21/FY22E, mainly to factor in the companys softer business growth. Maintain weak business trends due to the lockdown in Mar20 and higher provisions. Net premium income growth moderated ~2% YoY with first year premium declining 4% YoY; renewal/single premium growth was tepid at 4% YoY each. Persistency ratio improved across 13-month/61-month cohorts to during 4QFY20 declined 5% YoY to INR17.5b while group APE declined 3% YoY to INR3.6b. Thus, total new business APE declined 4% YoY to INR21.