Q4 Results FY ’20

Private life insurer major HDFC Life Insurance posted its Q4 numbers today after market hours.

The company posted a 14.5% Y-O-Y decline in consolidated net profit at INR 311.65 Cr (vs INR 364.88 Cr), impacted by a rise in provisions and a drop in net investment income.

Net premium income growth saw a marginal hike to INR 10,475.95 Cr in the March quarter compared to INR 10,251.26 Cr.

The total new business premium rose by 15% Y-o-Y to INR 17,239 Cr in FY20. The new business margin rose to 25.9% in FY20 as against 24.6% in the year-ago period.

In such a tough market conditions both annualised premium equivalent (APE) and the value of new business (VNB) saw double-digit growth in FY20.

For the full year (FY20), the (APE) rose by 18% Y-o-Y to INR 7,407 Cr while the value of new business rose by 25% to INR 1,919 Cr in FY20.

During the quarter, the insurer made an additional INR 40 crore (equivalent to 4,500 lives) COVID-19 related mortality reserves. This is over and above the policy level liabilities.

HDFC Life Insurance also announced raising of INR 600 Cr of funds through issuance of non-convertible debentures (NCD) in the nature of subordinated debt instrument.

MD & CEO Speaks –

Vibha Padalkar, MD & CEO of HDFC Life said, we continue to deliver growth higher than industry and register steady performance across all key metrics. We believe that insurance remains a multi-decade opportunity with significant potential.

28 March, 2020

Update:

UK’s Standard Life sells 2.5 per cent stake in HDFC Life

UK’s Standard Life (a joint venture partner in HDFC Life Insurance Company) on Friday sold 50000000 shares (or 2.5 per cent stake) in HDFC Life Insurance Company for INR 2,200 Cr through open market transactions.

Shares were sold at INR 441 per share, at about 8 per cent discount to Thursday’s closing price of INR 477.30.

As on 31 December ‘19, Standard Life (Mauritius Holdings) 2006 held 14.73 per cent while Housing Development Finance Corporation (HDFC) held 51.45 per cent stake in HDFC Life Insurance Company.

Leading foreign institutional investors such as Norges Investment Management, Key Square Capital Management, Fidelity Investment, and Capital Group Asset Management are among the buyers which picked up shares of the insurance firm, according to market sources.

The share of HDFC Life Insurance Company Ltd closed 7.63 per cent or INR 36.45 down on NSE when the market closed on Friday.

12 March, 2020

HDFC Standard Life Insurance Company Limited (HDFC Life) is one of India’s leading life insurance companies, offering a range of individual and group insurance solutions that meet various life stage needs of customers.

HDFC Life: Profile

Established in the year 2000, HDFC Life is a prominent long-term life insurance solutions provider in India.

It is a joint venture company between HDFC Limited (Housing Development Finance Corporation and Standard Life Aberdeen plc (one of the world’s largest investment companies)

HDFC Life: Business

• HDFC Life offers a wide range of group and individual insurance solutions including Pension, Protection, Savings & Investment and Health, along with Children’s and Women’s Plan. (As on March 31, 2019, the Company had 11 group and 38 individual products in its portfolio, along with eight optional rider benefits, catering to a various range of customer needs)
• HDFC Life is the most profitable life insurer (based on Value of New Business – VNB margin and among the top 5 private life insurers in India (measured on total new business premium) in Fiscal 2016 and Fiscal 2017.
• Besides consistently being among the top three private life insurers (in terms of profitability based on Value of New Business margin), it has also consistently been among the top three private life insurers in terms of market share based on total new business premium between Fiscal 2015 and Fiscal 2017 (CRISIL report)

HDFC Life: Network

• The company continues to benefit from its presence across the nation with 412 branches and additional distribution touch-points through several partnerships.
• The partnerships comprise 265 bancassurance partners including SFBs (Small Finance Banks), MFIs (Micro Finance Institutions), NBFCs (Non-Banking Financial Companies), etc. and 39 partnerships within non-traditional ecosystems. The Company is also supported by a strong base of financial consultants.
• The Company has 15,406 full-time employees and has over 58,147 individual agents.

Listed On:

The shares of HDFC Life Insurance Company Ltd are presently listed at Bombay Stock Exchange (BSE); CODE 540777 and National Stock Exchange (NSE) as HDFCLIFE

Stock Info

Share Holding Pattern

Financials

Conclusion

The Company is jointly promoted by Housing Development Finance Corporation Limited (HDFC), Standard Life (Mauritius Holdings) 2006 Limited (Standard Life Mauritius) and, Standard Life Aberdeen plc (Standard Life Aberdeen)

Promoters of the company are having more than 76% stake with 0% pledge shares.

It is recently included in the Futures & Options (FO) segment effective February 28, 2020, and anecdotal evidence suggests that after such inclusion most stocks rise in double digits.

On the technical front, the stock is trading below its crucial moving averages 50 EMA and 200 EMA due to on-going market corrections, but keeping other financial ratios (ROE, ROCE etc…) and backed by strong parents the company is a worth add in the long-term portfolio.

Keeping the above-listed factors in mind, HDFC Standard Life Insurance looks good at INR 470. Finblab recommends investing in the stock in a staggered manner for the long term.

Value Pick Stock: February 2020

AMBER ENTERPRISES INDIA LIMITED

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I (Vishal Dalwadi) or “FinBlab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post HDFC Life Insurance: Value Pick Stock, Update appeared first on Upcoming ipos: Latest news on stocks, economy & finance.

The Board of Directors of HDFC Life today on 23th October 2019 approved the consolidated and standalone audited financial results for the half year ended September 30, 2019. Below is the summary of standalone results:

Private Market Share: The Company expanded its market share in the private sector to 15.2 percent based on Individual WRP (weighted received premium), on the back of Y-O-Y growth of 35 percent. HDFC Life continue to rank No.1 amongst private players in total new business premium and group business (received premium) with market share of 22.4 percent and 28.9 percent respectively during H1 FY20.

New Business Lives and Sum Assured: Total number of lives covered increased to 2.9 Crs in H1 FY20, growing by 33 percent. Overall new business sum assured also saw an increase of 68 percent to INR 4.4 lakh Cr during the same period.

Product Portfolio: A profitable product suite has always been one of the key pillars of HDFC Life strategy with high focus on the protection and retirals space. Protection APE has increased to INR 580 Cr during H1 FY20, from INR 407 Cr in the corresponding period last year, representing a growth of 43 percent. Annuity APE was at INR 123 Cr in H1 FY20, growing by 17 percent over H1 FY19. Protection and annuity businesses comprise 28 percent and 15 percent of total new business premium respectively. Take a look at hdfc life insurance plans

Distribution Mix: Our diversified distribution mix is demonstrated by the wide access to our customers with 270 plus partners, including more than 40 new-ecosystem partners as on September 30, 2019. This is further supplemented by our 421 branches spread across the country.

Assets Under Management (AUM): The Company is one of the leading fund managers in India with an AUM of over INR 1.3 lakh Cr; the debt:equity mix as on September 30, 2019 is 63:37. Almost 96 percent of debt investments are in GSecs and AAA bonds as on September 30, 2019.

MD & CEO Speaks –

Commenting on the half year’s performance, Ms. Vibha Padalkar, MD & CEO said “We have delivered strong performance across all key metrics and have continued to sustain our profitability.

Despite a challenging macro-environment, we have grown by 35% on Individual WRP, compared to industry growth of 11%. This has enabled us to increase our market share by 220 basis points to 15.2%. Our diversified distribution mix is underpinned by the strong growth of our proprietary channels, coupled with steady performance across our corporate partners.

We remain committed to tap the immense protection and retirals opportunity in India. We expect our continued product innovation and advancements in the use of technology to sustain our performance across business cycles. These factors put us in a good position to harness the long term growth potential of the life insurance industry and provide the best value proposition to our customers, partners and shareholders.

Also Read: Value Pick Stock of the month – POLYCAB INDIA

3 November, 2017

HDFC Standard Life – one of the leading life insurance companies in India is planning to raise INR 8695 crore (8695 crore of OFS) via initial public offer (IPO)

HDFC Life – Company Profile

• Incorporated in the year 2000, HDFC Standard Life Insurance Company Limited (HDFC Life) is Mumbai based life insurance provider in India.
• HDFC Life is a joint venture between HDFC (Housing Development Finance Corporation Limited, one of India’s leading housing finance institutions) and Standard Life Aberdeen plc (one of the world’s largest investment companies)

Working Area

• HDFC Standard 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.
• HDFC Standard Life Insurance is the most profitable life insurer, based on Value of New Business (VNB) margin, among the top five private life insurers in India (measured on total new business premium) in Fiscal 2016 and Fiscal 2017.
• Besides consistently being among the top 3 private life insurers in terms of profitability based on VNB margin, it has also consistently been among the top 3 private life insurers in terms of market share based on total new business premium between Fiscal 2015 and Fiscal 2017, according to CRISIL report.
• 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.

Subsidiary Company

The Company has two wholly owned subsidiaries namely –

• HDFC Pension Management Company Limited, which is regulated by Pension Fund Regulatory and Development Authority of India and
• HDFC International Life and Re Company Limited, which is regulated by Dubai Financial Services Authority.

Company’s Network

• HDFC Life has a pan India presence, comprising 414 branches and spokes, and over 11,200 branches across India of its top 15 bancassurance partners, as on June 30, 2017.
• The Company has 15,406 full-time employees and has over 58,147 individual agents.

Company Promoters

• Housing Development Finance Corporation Limited (HDFC)
• Standard Life (Mauritius Holdings) 2006 Limited (Standard Life Mauritius) and
• Standard Life Aberdeen plc (Standard Life Aberdeen)

IPO Opening / Closing Dates & Listing

IPO Details – Price, Minimum Bid and Other

Financial Performance

Revenues

The Company shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 5 years and jumped from INR 14016 crore in FY 2013 to INR 30554 crore for the period ended FY 2017.

Profits

Though the company has shown steady growth in revenue, the company has also registered consistent growth in profits in these 5 years. Starting from INR 447 crore of profits in FY 2013, the company’s earnings improved to INR 892 crore for the period ended FY 2017.

CONCLUSION –

Considering company’s valuation and financial parameters, FinBlab recommends SUBSCRIBE ratings on HDFC Standard Life Insurance IPO.

FinBlab Performance on last 5 IPO Recommendation

Previous Article – KHADIM INDIA LIMITED IPO

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post HDFC Standard Life Insurance Company Ltd IPO – Company Profile, Price, Analysis, Update appeared first on Upcoming ipos: Latest news on stocks, economy & finance.