HDFC Life Q4 Review - Annual Premium Equivalent Growth Strong; Persistency Trends Improving: Motilal Oswal
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Motilal Oswal Report
HDFC Life Insurance Company Ltd. reported improvement in new business annual premium equivalent (led by the non-participating and participating businesses), while the trend in retail protection remained muted.
Value of new business margins improved to 27%, aided by a rise in non-Par as well as cost control.
Thus, absolute VNB grew 52% YoY in Q4 FY21.
On the persistency front, better trends were witnessed in the Par/protection business. As a result, 13th/25th month individual premium persistency improved ~200 basis point/500bp YoY.
Overall, we expect the company to reflect 22% VNB growth over FY21–23E.
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