HDFC Life Insurance slips after Q4 PAT slides 14.54% to Rs 311.65 cr.

HDFC Life Insurance Company fell 0.99% to Rs 480 after the company's consolidated net profit dropped 14.54% to Rs 311.65 crore in Q4 March 2020 as compared to Rs 364.68 crore in Q4 March 2019.

Consolidated net premium income rose 2.19% to Rs 10,475.95 crore in Q4 March 2020 from Rs 10,251.26 crore in Q4 March 2019. Profit before tax (PBT) slumped 17.78% to Rs 284.41 crore in Q4 March 2020 from Rs 345.95 in Q4 March 2019.

Consolidated net profit gained 1.52% to Rs 1,297.45 crore in the year ended March 2020 (FY20) as against Rs 1,277.93 crore in the year ended March 2019 (FY19). Net premium income climbed 11.45% to Rs 32,244.98 crore in FY20 from Rs 28,930.67 crore in FY19. PBT rose 1.77% to 1313.92 crore in FY20 over FY19. The result was declared after market hours today, 27 April 2020.

Total premium rose 12% to Rs 32,707 crore in FY20 over FY19. Individual Annualized Premium Equivalent (APE) grew 18% to Rs 6,145 crore in FY20 as against Rs 5,204 crore in FY19. Total APE jumped 18% to Rs 7,407 crore in FY20 as compared to Rs 6,260 crore in FY 19.

Asset Under Management (AUM) gained 1% to Rs 1,27,226 crore in FY20 as against Rs 1,25,552 crore in FY19. As on 31 March 2020, AUM stood at Rs 1.3 lakh crore (debt:equity mix - 71:29; more than 96% debt investments are in G-Secs and AAA bonds as on 31 March 2020. Net worth grew 24% to Rs 6,992 crore in FY20 as compared to Rs 5,659 crore in FY19.

Indian embedded value soared 13% to Rs 20,650 crore in FY20 from Rs 18,301 crore in FY19. Value of new business surged 25% to Rs 1,919 crore in FY20 over Rs 1,537 crore in FY19. The solvency ratio stood at 184% in FY20 as against 188% in FY19.

Individual weighted received premium (WRP) grew by 19% leading to expansion of market share by 170 bps to 14.2%. The company has maintained leadership position within the group segment, growing by 20%, resulting in a market share of 29%.

Commenting on the current situation, Vibha Padalkar, MD & CEO said "As a result of this pandemic, human lives have been disrupted and organizations around the world are witnessing challenging times. As a responsible corporate citizen, the safety and well-being of our employees, customers and partners and ensuring uninterrupted service to our customers are our foremost priorities. Our head-start as a digital insurer has helped facilitate this."

Commenting on the FY20 performance, Vibha Padalkar, MD & CEO 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. The opportunities across mortality, morbidity and longevity remain large in our country. Customer-centricity, product innovation, a diversified distribution network, and technological capabilities are key pillars of our strategy and enablers to provide a sustainable value proposition to our customers, partners and shareholders."

On the technical front, the stock's RSI (relative strength index) stood at 50.098. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading between its 20-day moving average (DMA) and 50-day moving average (DMA) placed at Rs 469.43 and Rs 499.13 respectively.

HDFC Life Insurance Company provides various individual and group insurance solutions across India.

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