Hdfc Life Insurance Co. Ltd. · NSE:HDFCLIFE
Hdfc Life Insurance — FY2025 Earnings Presentation
57 slides from Hdfc Life Insurance's earnings presentation, Apr 17, 2025
Slide 1: Cover letter to stock exchanges
April 17, 2025 Ref. No: HDFC Life/CA/2025-26/3 Listing Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No C/1, Block G, Sir PJ Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Fort, Mumbai- 400 051 Mumbai – 400 001 NSE Symbol: HDFCLIF
Slide 2: Press Release - Performance for Twelve Months Ended March 31, 2025
PRESS RELEASE - PERFORMANCE FOR TWELVE MONTHS ENDED MARCH 31, 2025 BSE Code: 540777 NSE Code: HDFCLIFE HDFC Life: Another year of sustained performance and consistent delivery: 18% individual APE growth, 13% Value of new business growth and 70 bps increase in overall market share Mumbai, 17th Apr, 2
Slide 3: CEO's Statement and Key Financial Summary
CEO’s Statement: Vibha Padalkar, Managing Director and CEO of HDFC Life, commented: “FY25 was a year where we deepened our reach, continued sharpening our value propositions and demonstrated the resilience of our business model. We are happy to report an 18% growth in Individual APE for FY25, in lin
Slide 4: Distribution mix and definitions and abbreviations
Distribution mix by Indl APE (Corp Agents/ Agency/ 65/18/7/10 65/18/6/11 Broker/ Direct) Note: 1. For the period ending 11M Percentages may not add up due to rounding off effect Definitions and abbreviations • Annualized Premium Equivalent (APE) - The sum of annualized first year regular premiums an
Slide 5: About HDFC Life
About HDFC Life Established in 2000, HDFC Life is a leading, listed, long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as Protection, Pension, Savings, Investment, Annuity and Health. The Company h
Slide 6: Investor Presentation – FY25
Slide 7: Executive summary: FY25
Executive summary: FY25 Revenue & Scale Profitability & Cost Customer & Capital Rs (Bn.) 136.2 Value of New Rs (Bn.) 39.6 CY 87% Individual 13th month APE Business Growth 18% Growth 13% persistency (VNB) PY 87% Rs (Bn.) 376.8 CY 25.6% Overall 99.8% Renewal New Business Claim settlement premium Margi
Slide 8: Agenda
Agenda 1 Performance Snapshot 2 Business Overview 3 Other Business Highlights 4 Life insurance in India Page 3
Slide 9: Consistent, predictable, sustained performance
Consistent, predictable, sustained performance Rs bn Holistic growth Consistent track record over multiple periods Value of new business Individual APE Renewal premium 377 136 71 185 39.6 37 108 36.7 FY17 FY21 FY25 FY17 FY21 FY25 21.9 15.4 9.2 Protection new business1 Annuity new business2 89.4 FY17
Slide 10: Steady performance across business cycles
Steady performance across business cycles Surrender value Change in Change in traditional (SV) regulation ULIP tax savings tax exemption ▪ Increase in SV after Covid-19 pandemic exemption limit completion of 1st ▪ Lockdown – Face limit Tax exemption removed policy year to face Tax exemption for poli
Slide 11: Consistent track record of maximising shareholder value
Consistent track record of maximising shareholder value Rs bn 5 year 9 year Metrics FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 CAGR CAGR (FY20-25) (FY16-25) Value of new business 7.4 9.2 12.8 15.4 19.2 21.9 26.8 36.7 35.01 39.6 16% 20% (VNB) Operating variances 3.1 2.1 2.0 1.4 1.5 0.8 -4.92 1
Slide 12: Robust delivery across key metrics (1/2)
Robust delivery across key metrics (1/2) Steady individual WRP growth Elevated focus on expansion of customer base (NOPs in 000’s) Pvt. mkt share 16.5% 15.4% 15.7%1 Pvt. mkt rank #2 #2 #21 Overall mkt 10.8% 10.4% 11.1%1 share 10% 1,267 133.6 1,054 112.6 113.8 982 FY23 FY24 FY25 FY21 FY23 FY25 2 Year
Slide 13: Robust delivery across key metrics (2/2)
Robust delivery across key metrics (2/2) Rs bn Significant improvement in 61st month persistency Healthy VNB growth NBM: 26.3% 25.6% 87% 87% 13% ▪ Focus on quality of ▪ Multiple pools of business and providing profitability contributing 63% 53% to VNB accretion superior customer experience_ 39.6 35.
Slide 14: Agenda
Agenda 1 Performance Snapshot 2 Business Overview 3 Other Business Highlights 4 Life insurance in India 9
Slide 15: Key elements of our strategy
Key elements of our strategy 1 2 3 4 Profitable growth Diversified Customer first Risk management distribution mix & board Ensuring Creating superior governance sustainable and Developing multiple product propositions profitable growth channels of growth and customer Maintaining focus on by identify
Slide 16: Focus on profitable growth
Focus on profitable growth FY21 FY22 FY23 FY24 FY25 Rs bn Profitable growth 26.3% 25.6% Economic New business Margin 26.1% 27.4% 27.6% Profit Value of new business 21.9 26.8 36.7 35.0 39.6 Profit after tax (PAT) 13.6 15.7 18.0 distribution 13.6 12.1 Diversified Accounting mix Profit Underwriting pro
Slide 17: Emergence of Existing Business Surplus
Emergence of Existing Business (EB) Surplus Profit Emergence 80 EB Surplus emergence as a % of VIF 25% Profitable 20% 20% growth 70 19% 19% 20% Traditional Savings Protection ULIP (Longer Tenure) (Ind+Grp) 60 15% 50 distribution Diversified 0%-1% 10% mix 20%-25% 40 30%-35% 20%-25% 5% 55% - 60% 30%-3
Slide 18: Analysis of change in IEV
Analysis of change in IEV Rs bn EVOP: 79.2 EVOP%1: 16.7% Profitable growth 1.2 3.6 (3.2) 39.6 554.2 38.4 Operating variances Economic Dividend & 474.7 and assumption variances Capital Injection distribution Diversified changes Unwind VNB mix 391.4 329.4 Adjusted Net worth (ANW) Value of in-force bus
Slide 19: Diversified distribution
Diversified distribution Proprietary channels Profitable growth Agency: segmented growth distribution Diversified mix • ~2.4 lakh agents: Top two agency force amongst private life insurers • Segregating Focus (tier 1) and Growth (tier 2,3) markets with a micro market strategy Customer • 2x company l
Slide 20: Agency: Building momentum for long-term
Agency: Building momentum for long-term Rs Bn. Driving sustainable growth through strategic investments Levers for future growth Profitable growth Individual APE Number of Agents (000’s) On-boarding high performing profiles: home-makers, retired govt servants & financial distributors distribution Di
Slide 21: Product mix across key channels
Product mix across key channels1 Segment FY23 FY24 FY25 Segment FY23 FY24 FY25 UL 24% 40% 42% UL 10% 26% 26% Profitable Agency Par 27% 22% 18% Par 33% 29% 26% growth Banca Non par savings 42% 30% 33% Non par savings 49% 33% 33% Term 3% 4% 4% Term 6% 7% 10% Annuity 4% 5% 3% Annuity 3% 4% 5% distribut
Slide 22: Healthy growth in protection
Healthy growth in protection Rs Bn. Retail protection APE Retail sum assured Profitable growth 26% 32% 4,349 7.4 distribution Diversified 3,700 mix 5.9 2,513 4.7 Customer first FY23 FY24 FY25 FY23 FY24 FY25 2 Year CAGR 2 Year CAGR & governance ▪ Ranked #21 in individual sum assured and #11 in overal
Slide 23: Key product innovations over the years
Key product innovations over the years Profitable growth FY15-18 FY19-22 FY23-FY25 distribution Diversified mix Click 2 Protect 3D Plus Sanchay Plus Systematic Pension Plan Participating Pension Protection Non-par savings HDFC Life Click 2 Protect Life Protection Customer Pension Guaranteed Sanchay
Slide 24: Recent product innovations across categories
Recent product innovations across categories Profitable ULIP Non-par savings Protection Participating Non-par pension growth distribution Diversified mix Customer first & governance management Risk A plan designed to A game changing An innovative plan that A market linked plan A savings plan with se
Slide 25: Reimagining customer experience
Reimagining customer experience Profitable growth ▪ Reduced customer effort across journeys Customer ▪ Omnichannel consistency and clarity lifecycle distribution Diversified Execution management ▪ Personalized communication by segment mix Customer ▪ Feedback loops from partners & employees first Cul
Slide 26: Risk management & board governance
Risk management & board governance Board of Directors Profitable Independent and experienced Board growth Committees Policyholder Risk Protection, claims Nomination & Corporate Social Stakeholders’ Audit Investment With Profits Capital Raising Board Management monitoring and Remuneration Responsibil
Slide 27: Financial risk management framework
Financial risk management framework Natural hedges Product design & mix monitoring Profitable growth ▪ Protection and longevity businesses ▪ Prudent assumptions and pricing approach ▪ Unit linked and non par savings products ▪ Average age at entry ~60 years ▪ Broad-basing of counter-parties for FRAs
Slide 28: Future ready organisation: Leveraging technology, digital and analytics
Future ready organisation: Leveraging technology, digital and analytics Profitable growth 1 3 5 distribution Diversified mix Give me a Give me HYPER- OMNI-CHANNEL PLATFORMISATION simple journey PERSONALISATION frictionless SERVICE Nudge me in approach to tech from purchase for customers service to c
Slide 29: Building next-gen insurance platform: Project Inspire
Building next-gen of insurance platform: Project Inspire Reimagining our systems and processes by investing in new technologies and capabilities Profitable growth Envisioned tracks for transformation- moving towards execution distribution Diversified mix Data Business Product CRM Process Integration
Slide 30: Gen AI initiatives for process efficiency
Gen AI initiatives for process efficiency Complaint Predictor Calls Analyser ▪ Pre-empting prospective complaints and ▪ Accelerated resolution of service bottlenecks, addressing issues proactively driving faster process optimization ▪ AI used to transfer to SME¹ for faster resolution ▪ Real-time vis
Slide 31: HDFC Pension Fund Management
HDFC Pension Fund Management AUM Rs Bn. Private market share FY23-25 2.5x 1,156 43% 43% FY22-24 41% 2.7x 770 FY21-23 2.8x 37% FY20-22 3.4x 454 284 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 • HDFC Pension PFM1 continues to be the largest private PFM1 growing in line with industry in Retail and Corporat
Slide 32: HDFC International Life and Re
HDFC International Life and Re USD Mn. Gross Written Premium (Revenues) Positive operating performance 34.1 ▪ Reinsurance business’ GWP grew by 28% in FY25 and Net 3.6 Profit grew by 51% in FY25 ▪ 8 products available through GIFT City across UL, Term 24.4 Life, Health, Group Term and Group Credit 0
Slide 33: Agenda
Agenda 1 Performance Snapshot 2 Business Overview 3 Other Business Highlights 4 Life insurance in India 28
Slide 34: Persistency trends for HDFC Life
Persistency trends for HDFC Life Across key channels CY (FY25) 87% 86% 88% 87% 78% 77% 77% 78% 73% 72% 72% 74% 70% 68% 69% 66% 64% 61% 62% 63% Agency Banca Direct Company 13th month 25th month 37th month 49th month 61st month Across key segments PY (FY24) 87% 86% 89% 85% 87% 79% 82% 81% 79% 74% 71%
Slide 35: Steady VNB trajectory
Steady VNB trajectory Rs bn 13% (0.9) (0.3) 1 2 NBM% 26.3% 0.0% (0.6%) (0.2%) 0.1% 25.6% VNB Growth Note: Numbers may not add up due to rounding off 1. Reflects the impact of difference in mix of segment/distribution channel/tenure/age/sum assured multiple, amongst others 30 2. Effective October 1,
Slide 36: Sensitivity analysis: FY25
Sensitivity analysis: FY25 Change in VNB Analysis based on key metrics Scenario % Change in EV Margin 1 Change in Increase by 1% (1.4%) (2.7%) Reference rate Decrease by 1% 0.9% 2.6% Equity Market Decrease by 10% (0.2%) (1.4%) movement Increase by 10% (0.9%) (0.1%) Persistency (Lapse rates) Decrease
Slide 37: The tier 2/3 growth opportunity
The tier 2/3 growth opportunity Our focus is to deepen our presence While ensuring that quality of And building capacity for future in tier 2/3 markets business is maintained growth Contribution of tier 2/3 markets in HDFC 13M persistency Tier 2/3 markets’ ATS 41K+ Life’s APE closer to org closer to
Slide 38: Focus on increasing awareness across tier 2/3 markets
Focus on increasing awareness across tier 2/3 markets Spontaneous awareness (Private insurers) Focus on category creation and deeper regional connect, supported by large campaigns: Evident that insurance awareness is far lower in tier 2/3 markets Tier 1 Tier 2/3 Insurer New branch Hyper-localization
Slide 39: ESG at a Glance
ESG at a Glance 5 Pillars of ESG 34 34
Slide 40: Ethical Conduct & Governance
Ethical Conduct & Governance Leadership Oversight on ESG Policies & Frameworks ▪ ESG governed by the Board CSR & ESG Committee and driven by the ESG Management Committee and cross functional teams • Anti-bribery & Anti-corruption Policy ▪ Performance Management based on the principles of Balanced Sc
Slide 41: Responsible Investment
Responsible Investment RI – Policy, Framework & Governance structure Responsible Investing Products Policy objective Sustainable Equity Fund To generate optimal risk adjusted returns over the long term through consideration of The fund seeks to generate returns from investing in companies with high
Slide 42: Diversity, Equity & Inclusion and Employee Engagement
Diversity, Equity & Inclusion and Employee Engagement DEI – Policies & Programs Employee Engagement Talent Management / Retention Awards & Recognition • ‘Celebrate You’ programme ingrains DEI • Emotional and well being assistance • Launched Leadership Edge for mid-management • Great Place to Work re
Slide 43: Holistic Living: Delivering superior customer experience
Holistic Living: Delivering superior customer experience Customer Centricity Enhancing Customer Experience through our CX Program, based on 5 focus areas: Journey Simplifying buying journeys through platforms Online claim processing for eligible simplification – like LifeEasy (online term purchase)
Slide 44: Sustainable Operations & Climate Strategy
Sustainable Operations & Climate Strategy Policies & Frameworks • Boar approved Environment & Climate Change Policy, serving as a guideline for understanding and managing our environmental and climate risks, impacts and opportunities • Climate-related performance disclosed in accordance with the TCF
Slide 45: Financial and operational snapshot (1/2)
Financial and operational snapshot (1/2) Rs bn. FY25 FY24 FY23 New Business Premium (Indl. + Group) 333.7 296.3 290.9 Renewal Premium (Indl. + Group) 376.8 334.5 284.5 Total Premium 710.5 630.8 575.3 Individual APE 136.2 115.1 114.0 Overall APE 154.8 132.9 133.4 Profit after Tax 18.0 15.7 13.6 - Pol
Slide 46: Financial and operational snapshot (2/2)
Financial and operational snapshot (2/2) Rs bn. FY25 FY24 FY23 Overall New Business Margins (post overrun) 25.6% 26.3% 27.6% Operating Return on EV 16.7% 17.5% 19.7% Total Expenses (OpEx + Commission) / Total Premium 19.8% 19.4% 19.8% (1) Return on Equity 12.1% 11.5% 11.9% Solvency Ratio 194% 187% 2
Slide 47: Segment wise average term and age
Segment wise average term and age1 Average Policy Term (Yrs) Average Customer Age (Yrs) FY25: 24.4 (FY24: 22.9) FY25: 36.6 (FY23: 36.2) 16 38 UL UL 14 37 34 35 Par Par 35 35 22 37 Non-par Savings Non-par Savings 16 38 36 34 Non-par Protection Non-par Protection 36 34 13 48 Non-par Pension Non-par Pe
Slide 48: Agenda
Agenda 1 Performance Snapshot 2 Business Overview 3 Other Business Highlights 4 Life insurance in India 43
Slide 49: India: poised for sustainable growth
India: poised for sustainable growth The Fifth burgeoning largest and middle fastest class growing and Investment in physical and digital Rising affluence emergenceeconomy of Bharat building blocks to further drive growth India’s GDP (in USD)1 India’s middle income segment as % of all households3 To
Slide 50: Growth opportunity: Under-penetration and favorable demographics
Growth opportunity: Under-penetration and favorable demographics Life Insurance penetration1 (FY24) Life Insurance density US$ 2 (FY24) 6,264 ▪ India remains vastly under-insured, both in terms of penetration and density 7.4% 7.1% 6.8% ▪ Bima Trinity initiative to catalyse growth: o Bima Sugam: Unif
Slide 51: Life protection: low levels of penetration
Life protection: low levels of penetration 1 3 Protection gap (2019) Sum Assured as a % of GDP 2 Trend of retail loans (Rs Tn.) 91.0% 332% 74 74.0% 71.0% 70.0% 252% 251% 61.0% 55.0% 50 153% 39 41.0% 143% 127% 29 23 85% 17 62% 23% India Malaysia Thailand China Japan Singapore Hong Singapore Japan USA
Slide 52: Macro opportunity: Retiral solutions
Macro opportunity: Retiral solutions 2 India’s pension market is under-penetrated at India’s retirement savings gap to grow annually by 10% to reach 1 3% of GDP ~$96Tn in 2050 146.2 2050 retirement savings gap ($ Tn.) 128.2 98.3 95.7 90.1 54.0 31.3 32.4 24.3 3.0 16.4 9.6 India Japan Hong Kong Canada
Slide 53: Life Insurance: Contributing to nation-building
Life Insurance: Contributing to nation-building Rs Bn Government bonds - Tenorwise Issuance Insuring India ▪ Policies issued annually (last 5 years): ~30 Mn 29% 21% 29% 30% 35% ▪ Death claims settled in FY24: ₹500 Bn <=15 yrs ▪ In-force sum assured (Mar 31, 2024): ₹222 Tn >15 yrs 79% 73% 71% 65% 71%
Slide 54: Industry new business trends
Industry new business trends 1 Product mix Private Players LIC 67% 60% 739 724 52% 54% 56% 48% 46% 44% 40% Individual WRP in Rs bn 33% 551 420 357 351 315 325 278 299 FY16 FY18 FY20 FY22 FY24 227214 Unit Linked Conventional 2 Distribution mix 10% 12% 16% 15% 17% 4% 3% 3% 3% 3% 4% 5% 3% 3% 3% FY16 FY
Slide 55: Life Insurance: A preferred savings instrument
Life Insurance: A preferred savings instrument Household savings composition Financial savings mix 26% 21% 24% 23% 25% 2% 5% 9% 9% 9% 2% 15% 9% 19% 8% 9% 17% 18% 22% 21% 48% 18% 59% 51% 52% 58% 17% 18% 17% 67% 56% 52% 48% 42% 44% 41% 49% 48% 42% FY13 FY16 FY19 FY22 FY24 FY13 FY16 FY19 FY22 FY24 Gros
Slide 56: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase any securities (“Securities”) of HDFC Life Insurance Company Limited (“HDFC Life” or the “Company”) in India, the United Stat
Slide 57: Thank You
Thank You For queries, reach out to the Investor Relations team at investorrelations@hdfclife.com FY24 Annual Report FY24 ESG Report FY25 ESG Deck Sustainability Factsheet 52
HDFC Life Insurance Company — FY2025 Earnings Presentation on 6ix