HDFC Life Q4FY23 PAT down -28.5% at Rs362cr on lower investment income and higher actuarial provisions
HDFC Life reported 21.42% surge in total revenues for the March 2023 quarter on consolidated basis at Rs21,471cr. For FY23, HDFC Life reported 16.5% market share among private life insurers. That is market expansion of 70 basis points over the previous year. On a yoy basis, the protection APE was up 20% while the annuity APE was up 59%.
The VNB (value of new business) margins stood at 27.6% for the year while the Return on Embedded value (ROEV) stood at an impressive 19.7%. The embedded value has been estimated for the insurance company at Rs39,527 crore. The full year PAT has grown by 13% at Rs1,360 crore. The company has proposed a final dividend of Rs1.90 per share.
Financial highlights for Mar-23 compared yoy and sequentially
| HDFC Life | |||||
| Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Revenues | ₹ 21,471 | ₹ 17,682 | 21.42% | ₹ 19,718 | 8.89% |
| Net Profits | ₹ 362 | ₹ 506 | -28.49% | ₹ 316 | 14.58% |
| Diluted EPS | ₹ 1.70 | ₹ 2.47 | ₹ 1.48 | ||
| Net Margins | 1.69% | 2.86% | 1.60% | ||
| Solvency Ratio | 2.03 | 1.76 | 2.09 | ||
| Expense Mgmt Ratio | 20.60% | 17.30% | 19.30% | ||
| Policyholder Liability Ratio | 1737.50% | 1205.70% | 1785.80% |
Assets under management has risen yoy from Rs2.04 trillion to Rs2.39 trillion. The value of new business was up sharply on a yoy basis. Operating expenses as a percentage of total premiums went up on a yoy basis from 12.3% to 14.8%. Net margins bounced back to above 2% after being well below 2% in the sequential quarter.