PRESS RELEASE
HDFC Life posts Rs 725.3 crore profit in 2013-14
- Registered a growth of 7% in total premium, 17% in renewal premium
- Sustained its position amongst the top 3 private players in individual and group business
- Recorded market share of 13.8% in individual business (private industry), 5.2% (total
industry)
Mumbai, May 13, 2014: HDFC Life, India’s leading long term private life insurance
solutions provider has registered a profit of Rs 725.3 crore in 2013-14. The company
recorded 7% growth in total premium, primarily driven by 17% growth in renewal
premium and 30% growth in group business. The company has introduced new
processes to strengthen the quality of business which impacted growth in individual
first year premium.
Key Financial and Operational Highlights:
 Total premium: Growth of 7% to Rs 12,063 crore from Rs 11,323 crore in 2012-13
largely due to healthy growth in renewal premium and group business;
 First year premium (Individual business): Introduction of stringent measures to
strengthen the quality of business resulted in a deceleration in business through
Bancassurance channel and we closed the year with Rs 2,356 crore which is a degrowth of 24% vs previous year;
 Renewal premium: 17% increase to Rs 8,024 crore from Rs. 6,887 crore in 201213. Consistent renewal growth over the years, aided by a number of customer
education initiatives, reflects the quality of business underwritten by HDFC Life;
 Market share: Continue to be amongst the top 3 private players in individual
and group business. Ended the year with a market share of 13.8% in Individual
business (private industry) in terms of Weighted Received Premium (WRP); a
rebound in Q4 with market share of 15.6%;
 Operating expenses ratio: Expense ratio maintained at 10.7% and is one of the
best in the private industry. This is despite making significant investments in
new distribution channels, technology and products;
 Conservation ratio: Persistent efforts in customer education, customer
interaction avenues and a heightened focus on “need-based” selling helped in
maintaining the conservation ratio at a healthy level of 79% (PY 79%);
 Assets Under Management: 25% growth (PY 24%) to Rs 50,258 crore as
compared to Rs 40,108 crore in the previous year;
 Balanced product portfolio: Maintained a balanced product mix with ULIPs
contributing 49% and Conventional business forming 51% of the APE (Annual
Premium Equivalent) in the Individual business. Within the the Conventional
business segment, the Company’s strategy of increasing its focus on Non

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Participating business worked well and it contributed to 15% of overall
individual APE (PY 3% ) ;
Diversified distribution mix: Efforts to fortify and diversify channel mix have
started yielding results with channels other than bancassurance contributing 30%
(PY 28%);
Claim settlement ratio: Ranked 1st in group claim settlement ratio (99.8%) and
2nd in Individual claim settlement ratio (95.7%) amongst private players (as per the
data published by IRDA for 2012-13)
Announcing the company’s financial results, Mr. Amitabh Chaudhry, MD& CEO,
HDFC Life, said, “Our focus on ‘growth with quality’ continued in 2013-14. As a trusted
name in the industry, we felt it was our responsibility to lead by example and set
standards on the ‘right behavior’ to provide our customers the best value for money. We
have redefined our values in more actionable terms with the onus on every employee to
look at his/her decisions through the prism of our values. We have created a 360 degree
framework that embeds the values in every action that we take in our company that
impacts our stakeholders. We have made significant inroads as part of our large
technology enabled transformation program with focus on social media, mobile, data
analytics, and cloud to drive business competitiveness. I am very proud that within two
years, we have established ourselves as the leading online life insurer with a strong
social media presence. Going forward, apart from augmenting and nurturing our
human capital, we will retain our focus on new growth engines.”
Vibha Padalkar, ED & CFO, HDFC Life said, “We are happy to share that despite a
tough macro-economic and regulatory environment, our total revenue less payouts to
policyholders continued to be strong at Rs 7,310 crore (PY Rs 7,361 crore). We have
shown a remarkable improvement in having achieved a post overrun new business
margin of 16.1% (PY 13.2%). Our embedded value has shown a healthy growth of 19.1%
to Rs 6,992 crore as on March 31, 2014 compared to Rs 5,872 crore the previous year.
Moreover, we have seamlessly transitioned to the new product regime during the year
and we are geared up to launch several path breaking products to meet diverse
customer needs.”
Glossary
Weighted received premium – The sum of first year regular premium and 10 percent
weighted single premiums and single premium top-ups
First year premium – Regular premium received during the year for all modes of
payments chosen by the customer which are still in the first year. For e.g. for a monthly
mode policy sold in March 2013, the first installment would fall into first year premium
for 2012-13 and the remaining 11 installments in the first year would be first year
premium in 2013-14.
Renewal premium – Regular recurring premium received after the first policy year
Total premium – Total reported premium during the year including first year, single
and renewal premium, for individual and group business
Conservation ratio – Ratio of current year renewal premiums to previous year’s renewal
premium and first year premium
APE (Annualized Premium Equivalent) – The sum of annualized first year regular
premiums and 10% weighted single premiums and single premium top-ups.
About HDFC Life
Established in 2000, HDFC Life is India’s leading long-term life insurance solutions
provider offering a range of individual and group insurance solutions that meet various
customer needs such as Protection, Pension, Savings, Investment, and Health. The
company also offers Women’s Plans to meet specific needs of women. Customers have
the added advantage of customizing plans, by adding optional benefits called riders, at a
nominal price. The company currently has 23 retail and 8 group products in its portfolio,
along with 9 riders.
HDFC Life continues to have the widest reach with about 500 branches in India touching
customers in over 900 cities and towns. The company has also established a liaison office
in Dubai. The company has a strong presence in its existing markets with a strong base
of Financial Consultants. HDFC Life is a joint venture between Housing Development
Finance Corporation Limited (HDFC), India’s leading housing finance institution and
Standard Life plc, the leading provider of financial services in the United Kingdom.
For more information, please visit our website, www.hdfclife.com. You may also
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