HDFC Life Q2 Review - Well Placed To Ride The Strong Demand Outlook: ICICI Securities
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ICICI Securities Report
We believe HDFC Life Insurance Company Ltd. is well on track to record more than Rs 25 billion value of new business and close to Rs 100 billion annual premium equivalent in FY22, implying 17-19% compound annual growth rate over the last three years.
A balanced product mix as well as a well-entrenched distribution mix, more than 15% growth potential in annual premium equivalent, possibility of improving VNB margins, and more than 18% steady state operating return on embedded value remain safe long-term investment thesis on HDFC Life.
Covid-19 related claims have resulted in cumulative less than 5% of embedded value till date but should have incrementally no major impact, in our view.
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