HDFC Life Insurance Company Ltd. share price target

a.Individual weighted received premium (WRP) grew 11% YoY, while overall premium rose 24% YoY. b.For 11M FY18, the market share in individual WRP improved to 13.2%. Group segment (largely protection business) market share stood at 29.5%. c.Premium mix moved in favor of ULIPs, but the company mentioned that it would look to increase the share of high-margin products over the medium term. d.Operating expenses stood at 12.3% for the quarter and at 13.5% (v/s 12.6% in FY17) for FY18.

HDFC Standard Life Insurance Co Ltd (HDFC Life) is the second largest and most profitable private life insurer in India with a New Business Premium (NBP) market share of 17% as on FY17. The company has a broad distribution network includes 125 bancassurance partners, 66,378 individual agents, 1200 frontline sales staffs, corporate agents and brokers etc. HDFC Life is the fastest growing life insurer in India. The company's NBP has grown at a CAGR of 17.8% over the last five years , while its immediate peers have grown at an average CAGR...

Nitin Aggarwal - Research Analyst (Nitin.Aggarwal@MotilalOswal.com);+91 22 3982 5540 / Anirvan Sarkar - Research Analyst (Anirvan.Sarkar@MotilalOswal.com) Alpesh Mehta - Research Analyst (Alpesh.Mehta@MotilalOswal.com);+91 22 3982 5415/ Parth Gutka - Research Analyst (Parth.Gutka@MotilalOswal.com) Investors are advised to refer through important disclosures made at the last page of the Research Report....

HDFC Life Insurance Company (HDFC Life) was established in 2000 as a joint venture between HDFC and Standard Life Aberdeen. In FY15-17, growth in new business premium remained strong at 29% CAGR to Rs. 19445 crore and grew to Rs. 9051 crore by September 2017. It has a comprehensive product portfolio of 32 individual and 10 group products, including a range of protection and savings products to address the insurance needs of diverse customer segments. In terms of distribution strength, it has 66,372 individual agents (which comprise 6.8% of all private agents in the Indian life insurance industry) and has 125 banking tie-ups including HDFC Bank giving access to the huge branch network. HDFC Life has a healthy balance sheet with total net worth of Rs. 44.6 billion and solvency ratio of 200.5% as at September 30, 2017, above the minimum 150%. It reported PAT of Rs. 886.9 crore and delivered return on equity of 25.6% in FY17. As on September 30, 2017, it had a total AUM of Rs. 995.3 billion and Indian embedded value of Rs. 140.1 billion....

IPO NOTE

HDFC Standard Life Insurance Company Ltd. (HDFCSL) is one of the most profitable life insurers, based on the Value of New Business (VNB) margin, among the top five private life insurers in India (measured on total new business premium) in FY16 and FY17....

HDFC Standard Life Insurance Company Ltd. (HSLIC) was established in 2000 as a joint venture between HDFC Ltd. and Standard Life Aberdeen plc (one of world's largest investment companies), initially through its wholly owned subsidiary The Standard Life Assurance Company and now through its wholly owned subsidiary Standard Life Mauritius. HSLIC was one of the most profitable life insurers, based on Value of New Business (VNB) margin among the top five private life insurers in India in FY16 and FY17, according to CRISIL. Its total New Business Premium for FY15, FY16 and FY17 was `54,921mn, `64,872mn and `86,964mn. Between...

HDFC Standard Life Insurance Co Ltd (HDFC Life) started as a JV between HDFC Ltd, Indias largest Housing Finance Company and Standard Life Aberdeen Plc. HDFC Life is the countrys third-largest private sector life insurance company with 16.5% share of total private sector premiums in FY2017. Based on the new business premium (NBP), it ran..

Incorporated in 2000, HDFC Standard Life Insurance Company Ltd (HDFC Life) is Mumbai based life insurance provider in India. HDFC Life offers a wide range of individual and group insurance solutions including Protection, Pension, Savings & Investment and Health, along with Children's and Women's Plan. It is a joint venture between HDFC and Standard Life Aberdeen plc. HDFC holds 61.21% in the third-largest private sector life insurance company while Standard Life Mauritius owns 34.75% equity stake. HDFC Life sells policies through a multi channel network. This includes direct sales through own branches, Insurance agents, Partner Banks and through other financial institutions. HDFC Life has...

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