Mumbai, January 21, 2022: The Board of Directors of HDFC Life approved and adopted today the audited standalone and reviewed consolidated financial results for the nine months ended December 31, 2021. Below is the summary of our standalone results:
Commenting on the current situation, Ms. Vibha Padalkar, MD & CEO said “It is quite heartening to note that India’s Covid vaccination coverage has crossed the 150 crore mark, with almost 90% of the eligible population receiving at least one dose. Further, the government has started vaccination drives for youngsters in the age group 15-18 years and the administration of booster doses to the vulnerable members of our society. These developments seem to have helped curtail the mortality impact of the more transmissible Omicron variant.Business sentiment remains positive and the high-frequency indicators suggest economic revival is on track.We are optimistic about the sustenance of business momentum in the months to come.”
Commenting on the Exide Life acquisition, Ms. Vibha Padalkar, MD & CEO said “We are happy to announce that effective January 1, 2022, Exide Life has become our fully wholly owned subsidiary as part of the overall merger process. We are thankful to our regulator, IRDAI, for their speedy approval. This first-of-its-kind transaction is a reflection of our intent to build a stronger India by providing a financial safety-net to more people. The integration process is underway and we expect to absorb the acquired business seamlessly, whilst maximising value unlock, over the next 18-24 months. We are happy to share that in the nine months ended December 31, Exide Life’s individual WRP grew 31%, comfortably higher than industry growth of 20%”
Commenting on the 9M FY22 performance, Ms. Vibha Padalkar, MD & CEO said “We continued to deliver consistent and robust growth of 21% in 9M FY22, resulting in a private market share of 15.2% in terms of Individual WRP. On a 2 year CAGR basis, we registered a growth of 14%, compared to a 5% growth for the overall life insurance industry, whilst maintaining a balanced and profitable product mix. On the claims front, we have honoured close to 3 lakh claims during 9M FY22. Gross and net claims were recorded at Rs. 4,657 crore and Rs. 3,406 crore, respectively. We have witnessed 19% growth in renewal premiums and further improvement in our 13th and 61st month persistency which now stands at 92% and 57% respectively vs. 89% and 53% in 9M FY21. The 13th and 61st month persistency for limited and regular pay policies was 87% and 53% respectively for 9M FY22 vs. 83% and 47% in previous year. Our value of new business increased to Rs. 1,780 crore, registering a yoy growth of 26%. New business margin stands at 26.5% for 9M FY22, vs 25.6% in 9M FY21. All channels registered growth in double digits with proprietary distribution (Agency, Direct and Online channels) growing by 25% based on individual APE. We are also happy to announce that in Q3, we cemented our partnership with South Indian Bank. Our Agency channel witnessed robust growth in individual APE of 35%. The channel has licensed more than 28,000 agents during 9M FY22, an increase of 52% over the previous year. Our Profit after Tax stands at Rs. 850 crore for 9M FY22, which is 18% lower than last year, primarily due to elevated claims during the pandemic and reserving for excess mortality. Our Solvency as on December 31, 2021 stands at 190%.
We are also pleased to inform you that our wholly owned subsidiary, HDFC Pension, has crossed the milestone of Rs. 25,000 crore AUM, on January 5, 2022. The journey has been gaining momentum – with first Rs. 10,000 crore achieved in 7 years, to the next Rs. 10,000 crore in 14 months and the last Rs. 5,000 crore in just three months. The Company has a market share of 37%, as of December 31, 2021, making it the #1 private Pension Fund Manager (PFM) in terms of NPS AUM. In addition, NPS is a significant feeder into our annuity business, growing at a rapid pace.
Also, we are humbled to win the ‘Best Governed Company in the listed segment: Large category’ at the 21st Institute of Company Secretaries (ICSI) National Awards for Excellence in Corporate Governance. We believe that the life insurance industry is poised to grow given the heightened awareness and importance of insurance as a financial protection tool.”
Other key highlights for the year ending December 31, 2021:
• Overall Market Share: Ranked #1 in terms of Overall New Business Premium in private sector with
market share at 21.7%; Private market share within group and individual new business segment of
28.3% and 15.2% respectively
• Product Portfolio: Continue to maintain a balanced product mix with share of participating savings,
non participating savings, ULIPs, protection and annuity accounted for 30%, 33%, 26%, 6% and 5% of
Individual APE respectively
• Distribution Mix: Diversified distribution mix is evidenced by wide access to our customers with over
300 partners and 1 lakh+ agents as on December 31, 2021, further supplemented by 372 branches
spread across the country
• Assets Under Management: AUM of over Rs. 1.9 lakh crore (Debt: Equity mix 64:36); over 98% of
debt investments in G-Secs and AAA bonds
