HDFC Life - Well Placed To Benefit From Strong Demand Outlook: ICICI Securities
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ICICI Securities Report
HDFC Life Insurance Company Ltd. has increased rates in its guaranteed savings offering.
When we look at derivative (forward rate agreement) mark to markets, some peers have reported losses in FY21 indicating interest rates have been higher than the exercise rates of these derivatives.
This, along with possible increase in interest rate outlook, will enable insurers to offer higher rates for their non-par guaranteed portfolio.
The company is well placed to benefit from this. Our channel checks indicate healthy demand for this segment.
Non-par savings was 26% of total annual premium equivalent in FY21 and has room to increase (it was 34% of mix in FY20).
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