Nifty 50 constituent and the private insurance player HDFC Life is slated to release its April-June earnings later today (July 15). Zee Business research estimates the company to post a decent Q1 show led by likely good growth in the new business premium (NBP).

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The desk anticipates net premium income at the insurer to log 17 per cent year-on-year (YoY) growth to Rs 13,432 crore versus Rs 11,480 crore in the year-ago period. The annual premium equivalent or APE is also expected to surge 18.1 per cent on-year to Rs 2,750 crore as against Rs 2,328 crore in the same quarter of the previous year. The metric is used to compare revenue by normalising policy premiums into the equivalent of regular annual payments.

The value of new business (VNB) is also seen to log 18 per cent growth to Rs 720 crore as against Rs 610 crore.VNB margin is however seen to remain steady during the reporting quarter at 26 per cent as against 26.2 per cent in Q1FY24.

The AUM at the company is expected to log a healthy 23.6 per cent growth to Rs 3.09 lakh crore versus Rs 2.5 lakh crore in Q1FY24.

Meanwhile, the solvency ratio is seen to take a hit and come in at 196 per cent. Simply speaking, the measure helps in ascertaining the insurer’s ability to honour its promise of sum assured. The desk sees the company to showcase good trends in the non-participating segment. 

The company, meanwhile, is focussed on increasing the growth outlook as well as the persistency ratio.

Ahead of its results today, the stock traded on a subdued note down 0.13 per cent at 634.75.