HDFC LIFE
HDFC life insurance has a well-diversified product and distribution mix portfolio of 36 individual and 11 group products with 5distribution channels. The company is the biggest player in the private life insurance sector and has ample future growth opportunities. The company has seen good growth in their distribution channels in Q1FY22 of 22% (calculated on the base of Annualized Premium Equivalent). The company's Banca distribution channel contributes towards 54% of APE, while 17% comes from direct channels where due to the acceleration in digitalization the channel saw growth of 2%, while 23% comes from individual agents and the rest from brokers. The company expects higher growth from the direct channel on account of increasing digital awareness and government initiatives leading to higher product sales and efficiency and the bank channel will also see growth from an increase in branches. The company has seen higher growth in their individual weighted received premium at 17% thus beating the industry growth of 8%. The company has also increased in the footstep in rural India with the launch of microinsurance products. Factors like under penetration of insurance in the Indian market, higher awareness, increasing life expectancy, digitalization, increasing level of consumer credit, well-diversified product and distribution mix will lead to higher Embedded value (EV) and New Business Values.
The net profit of HDFC Life stood at INR 269.55 Cr in Q1FY22. The company earned a net premium of INR 7,540.05 Cr, a 41% drop over the preceding quarter but a 32% rise YoY. Revenue fell 24% sequentially but rose 1% YoY to INR 14,605.87 Cr.