17 July 2024 Punjab Khabarnama : Single digit growth in premium income: HDFC Life Insurance reported net premium income growth of 9.0% YoY, as the first-year premium and renewal premium reported a good growth of 27.56% YoY and 10.45% YoY, respectively while single premium grew only by 0.62% YoY. Owing to the healthy growth in first year premium Annualized Premium Equivalent (APE) during the quarter grew by 23.1% YoY to Rs 2866 cr while New Business Premium (NBP) grew only by 9.0% YoY to Rs6400 cr. Going forward, the management remains optimistic on the premium growth of the company as it expects to grow in line with the industry.
Outlook
While we expect higher growth in APE business, we have reduced VNB margins due to latest regulatory changes. Based on this, we maintain a Buy rating on HDFC Life increasing our target price to ₹742, valuing the company at 2.65x its FY26E embedded value per share.
