Motilal Oswal's research report on HDFC Life Insurance
HDFC Life Insurance (HDFCLIFE) reported a stable 3QFY23 performance with in-line APE/VNB and healthy premium growth led by renewal premium (up 30% YoY), while new business premium grew moderately at 10% YoY. APE rose 26% YoY to INR32.6b (in line) in 3QFY23, fueled by annuity, nonlinked savings and credit life. Demand for ULIP was soft due to volatile capital markets while trend in retail protection improved QoQ. VNB too increased 26% YoY (in line) with margin expanding 100bp QoQ to 26.8%. EV grew 5% QoQ to INR377b.
Outlook
We estimate HDFCLIFE to deliver ~27% VNB CAGR over FY22-25 and margin to improve to ~31% by FY25. Retain Neutral with a TP of INR670 (premised on 2.8x Sep’24E EV).
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