ICICI Direct's research report on HDFC Life Insurance
HDFC Life Insurance reported a good set of numbers led by strong renewal premium, steady persistency and investment income. Gross premium growth remained healthy at 20.3% YoY to Rs 9628.21 crore, led by higher traction in renewal (up 21.5% YoY) and single premium (up 21.8% YoY). Growth in renewal premium continued to remain healthy at ~22% YoY to Rs4576.98 crore. New Business Premium (NBP) witnessed slight moderation at 19% YoY to Rs 5051.23 crore, due to sluggish group business. On APE basis, growth in premiums stood at 15.9% YoY to Rs 2100.14 crore, Individual APE for 9MFY21 stood at Rs 4660 crore, which was up by 6% YoY. Growth in retail protection stood at 17% YoY and 42% growth in annuity. The company is seeing improving customer confidence that is visible through trends in new business in individual and group segment. HDFC life is actively engaging new bancassurance partners for new business. Improving traction in housing credit protect business should witness growth, and has already reached 95% of previous years’ volume
We maintain our target at Rs 820/share, valuing the company at 5.0x FY23E EV. Maintain Buy.