HDFC Life Insurance Company is likely to report a 12 percent and 16 percent year-on-year (YoY) growth in profit and net premium income for the quarter ended March 2021. Sequentially, the same parameters may jump 25-30 percent. According to brokerages, annual premium equivalent (APE) may grow over 25 percent YoY as well as quarter-on-quarter (QoQ) in Q4 FY21.
"We expect a 29 percent YoY growth in APE in Q4 FY21 on the back of a 43 percent YoY growth in APE in March 2021 (low base of 25 percent YoY decline in March 2020). APE growth was strong at 23 percent YoY in January 2021, though it moderated to 18 percent YoY in February 2021," said Kotak Institutional Equities which expects a 37.7 percent YoY growth in value of new business (VNB).
"We expect VNB margin to compress 70 bps QoQ (up 150 bps YoY) to 25.8 percent in Q4 FY21 owing to a pick up in ULIPs," the brokerage added.
Motilal Oswal expects new business premium to show healthy pickup led by robust trends in annuity/PAR segments, and VNB growth to remain healthy while margin may witness a slight moderation.
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The brokerage sees a 13.5 percent YoY growth in profit and a 15.9 percent increase in net premium income for the quarter ended March 2021. Rise in COVID-related claims will be a key monitorable, it said.
According to Sharekhan, profit could grow 12 percent YoY and 31.7 percent QoQ, and net premium income growth could be 16 percent YoY and 28 percent QoQ.
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