HDFC Standard Life's margin profile improving, Q4 net profit rises 40%

Rising share of protection products to boost profitability, earnings: Analysts

HDFC Standard Life Insurance Company (HDFC Life) finished FY18 with over 24 per cent growth in net profit. The insurer’s earnings during the March 2018 quarter (Q4), the seasonally strong period for life insurance companies, grew 40.4 per cent year-on-year (y-o-y). Its annual premium equivalent (APE: a sales measure for an insurance firm based on new business won by it) increased around 32 per cent during the year.

HDFC Life’s value of new business (VNB) margin expanded 120 basis points (bps) to 23.2 per cent in FY18. VNB margin is a key profitability indicator of an insurer, and is the