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HDFC Life shares slipped 2 per cent to Rs 692, in an otherwise strong market, on the BSE on Tuesday as investors booked profit on the counter post healthy March quarter (Q4FY21) results. At 9:55 AM, the stock was trading at Rs 694 apiece, down 1.6 per cent on the BSE, as against a 0.5 per cent rise in the S&P BSE Sensex.
Private sector life insurer HDFC Life, on Monday, reported a 2 per cent jump in net profit (on a standalone level) to Rs 317.94 crore in Q4FY21, from Rs 311.71 crore posted in the same period last year. Furthermore, the insurer saw a 23 per cent rise in net premium in Q4FY21 to Rs 12,868.01 crore from Rs 10,464.46 crore a year ago. Its investment income of Rs 6,051.42 crore in the fourth quarter was down almost 50 per cent sequentially.
In FY21, the total annualized premium equivalent (APE) of the insurer rose 13 per cent to Rs 8,372 crore and the individual APE increased 16 per cent to Rs 7,121 crore. Besides, the total premium collected by the insurer, which includes new business premium and renewal premium, increased 18 per cent to Rs 38,583 crore. While the value of new business (VNB) went up by 14 per cent to Rs 2,185 crore, the new business margin (NBM), a measure of the profitability of life insurance companies, reported by the company stood at 26.1 per cent compared to 25.9 per cent in FY20.
“HDFC Life saw a healthy 36 per cent rise in APE for 4Q led by improved trends in the non-par product (79 per cent YoY), steady growth in annuities, Par and improvement in ULIPs, all supported by low base of last year. Credit protect has also seen a modest 2 per cent QoQ growth, reflecting gradually improved lending and attachment by bancassurance partners. It is interesting to see that most channels have done well in mobilizing premiums,” noted analysts at Jefferies in a result review report. The brokerage maintained its ‘Buy’ rating with a price target of Rs 880.
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