HDFC Life Insurance Company Ltd. share price target

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HDFCLIFE reported a 11% YoY growth in premium, led by a 16% growth in renewal premium and an 8% growth each in single/first-year premium. Persistency trends remain steady, with 13th/61st month persistency...

The Assets under Management increased 18% to Rs 194738 crore end December 2021 over Rs 165623 crore end December 2020. The Debt:Equity mix was 64:36, while about 98% of debt investments were in G-Secs and AAA bonds end December 2021. Networth increased by 12% to Rs 9054 crore end December 2021, while the solvency ratio of the company was at 190% end December 2021. Embedded Value (IEV methodology) increased 18% to yoy Rs 29543 crore with Embedded Value per share rising to Rs 145.9 per share at end December 2021. The journey has been gaining momentum with first Rs 10,000 crore achieved in 7 years, to the next Rs 10000 crore in 14 months and the last Rs 5,000 crore in just three months. The...

Focus on innovative product solutions and new business channels will be the key to keep the upward trend for new business growth. Considering the company's strong parentage, operational capabilities and upside potential, we reiterate our BUY rating on the stock with a revised TP of Rs. 790 based on 4.1x FY23E EV per share. Renewal & First year premiums ensue moderate growth Gross premiums written moderate growth of 14.2% YoY to Rs. 11,630cr this quarter supported by Renewal premium (~43.3% contribution) up 16.8% YoY and First year...

the quarter ended September 2021 (Q2FY2022). The company has maintained strong growth in the premium collection and exhibited improvement in new business margin of 26.4% in H1FY2022 on the back of a favourable product mix and cost control measures. The value of new business (VNB) jumped 24% to Rs 678 crore in Q2FY2022 from Rs 547 crore in Q2FY2021. The company has posted a 14% growth in total premium collection to Rs 11630.9...

HDFCLIFE reported an in line growth in premium, led by a 24%/17% YoY growth in the first year/renewal premium. Persistency trends improved across cohorts, with 13th/61st month improving 300bp each YoY to 91%/56%. However, there was a miss on shareholders' earnings by 20% due to higher COVID-19 claims settled. EVOP growth stood flat YoY over 1HFY22, affected by Excess Mortality Reserve (EMR) of INR6b. Excluding EMR, EVOP growth was steady ~34% YoY. On the APE front, the Individual Protection business declined by 8% YoY,...

HDFC Life has announced the 100% acquisition of Exide Life for consideration of INR66.87b, of which INR7.26b would be paid in cash. Furthermore, the company would issue 87m shares to Exide Industries Limited towards the balance amount at INR685 per share. HDFC Life expects to secure all the approvals and complete the transaction by 30th Jun'22. In FY21, Exide Life earned a total premium of INR33.25b (8.6% that of HDFC Life), and total AUM stood at INR187.8b (10.4% that of HDFC Life). The acquisition would enable HDFC Life to increase its market share by ~140bp to...

Deal valued at 2.5x at current EV of Rs27.1bn for Exide Life, looks on expensive side but 35% discount to listed players (ex-HDFCLI) HDFC Life is making a second attempt at an inorganic deal with acquisition of Exide Life for Rs66.87bn valuing the company at 2.5x current EV. The rationale for the deal has been (i) strong agency business (adds 40% to...

Spike in claims affects PAT; Operations stable HDFC Life Insurance Co. Ltd, a joint venture between HDFC Ltd. and Standard Life Aberdeen, provides insurance services and was listed on BSE on 17th...

the quarter ended June 2021 (Q1FY2022).The company has maintained strong growth in the premium collection and exhibited improvement in new business margin of 26.2% in Q1FY2022 on the back of a favourable product mix and cost control measures. The performance of the company has been impacted due to second wave of covid pandemic...

Higher reserves dent EVOP growth; persistency trends stable Motilal Oswal values your support in the Asiamoney Brokers Poll 2021 for India Research, Sales, Corporate Access and...

HDFC Life underperformed benchmarks in last six months by 5.4% given, second COVID wave challenges such as risks from claims (death & otherwise) and lockdown led limited activity on protection side. As per...

Healthy and consistent performance, margins improving, beats estimates HDFC Life Insurance Company has recorded 2% growth in the net profit to Rs 317.94 crore in the quarter ended March 2021 (Q4FY2021). The company has maintained strong growth in the premium collection and exhibited improvement in new business margin of 26.1% in FY2021 on the back of a favourable product mix and cost control measures. The value of new business (VNB) jumped 52% to Rs 777 crore in Q4FY2021 from Rs 512 crore in Q4FY2020. The company has posted a 22% surge in total premium collection to Rs 12910...

Margins remain steady at 26% in FY21 and largely in-line with expectations HDFC Life's GWP grew by 18% YoY in FY21 and 22% YoY in Q4FY21 leading to a better APE growth of 13% in FY21 v/s 30% decline post lockdown and was led by continued growth in non-Par savings segment, Margins were steady at 26% in FY21 & 27% in Q4FY21 and largely in-line with expectation. Margin expansion has been not large as protection business has been slower in H2FY21 and higher mortality charges (COVID reserve) and fixed cost in the credit product business. Company has been able to steady its product mix to...

HDFC Life (HDFCLIFE) reported improvement in new business APE (led by the Non-PAR and PAR businesses), while the trend in Retail Protection remained muted. VNB margins improved to 27%, aided by a rise in Non-PAR as well as cost control. Thus, absolute VNB grew 52% YoY in 4QFY21. On the persistency front, better trends were witnessed in the PAR/Protection...

Gross premium growth remained healthy at 21.6% YoY to | 12911 crore, led by steady traction in renewal to | 6350 crore (up 14.9% YoY) and new business premium to | 6560 crore (up 28.9% YoY). On an APE basis, growth in premiums increased 36.3% YoY to | 2806 crore. Individual APE for FY21 was at | 7120 crore, up 16% YoY. Growth in protection business remained slower with 4% YoY growth in individual premium to | 480 crore while group premium declined 21% YoY to | 3440 crore for FY21, primarily due to slowdown in credit disbursement. The company is seeing improving...