Multi-Pronged Risk Management and Protection Philosophy slide image

Multi-Pronged Risk Management and Protection Philosophy

50 50 Financial and operational snapshot (2/2) Q1 FY22 Q1 FY21 FY21 FY20 FY19 Overall New Business Margins (post overrun) 26.2% 24.3% 26.1% 25.9% 24.6% Operating Return on EV (1) 16.5% 15.8% 18.5% 18.1% 20.1% Operating Expenses / Total Premium 12.5% 11.5% 12.0% 13.1% 13.1% Total Expenses (OpEx + Commission) / Total Premium 16.4% 15.6% 16.4% 17.7% 17.0% Return on Equity (2) 14.1% 25.0% 17.6% 20.5% 24.6% Solvency Ratio 203% 190% 201% 184% 188% Persistency (13M / 61M) (3) 90%/53% 87%/53% 90%/53% 88%/54% 84%/51% Market Share (%) - Individual WRP - Group New Business - Total New Business Business Mix (%) 17.8% 18.5% 15.5% 14.2% 12.5% 25.9% 20.7% 27.6% 22.3% 20.7% 21.5% 29.0% 21.5% 28.4% 20.7% - Product (UL/Non par savings/Annuity/Non par protection/Par) (4) - Indl Distribution (CA/Agency/Broker/Direct) (4) - Total Distribution (CA/Agency/Broker/Direct/Group) (5) - Share of protection business (Basis Indl APE) 27/32/5/8/29 27/28/5/11/30 56/15/6/23 59/12/5/24 22/7/3/18/50 27/7/2/23/41 8.3% 10.5% - Share of protection business (Basis Overall APE) 15.7% 13.1% 24/31/5/7/34 28/41/4/8/19 55/15/5/7/18 61/13/7/19 55/14/9/22 64/13/4/19 25/6/2/17/50 23/7/3/17/51 26/7/2/16/49 6.8% 7.6% 6.7% 12.8% 17.2% 16.7% · Share of protection business (Basis NBP) 22.4% 13.6% 19.6% 27.6% 27.0% 1. 2. 3. Pre excess mortality reserve (EMR) EVOP% is 16.5%; Post accounting for EMR, EVOP% stands at 14.4% Calculated using net profit and average net worth for the period (Net worth comprises of Share capital, Share premium and Accumulated profits) Persistency ratios (based on original premium) 4. Based on individual APE. UL: Unit Linked, Trad: Traditional, Par: Participating & CA: Corporate Agents. Percentages are rounded off 5. Based on total new business premium including group. Percentages are rounded off HDFC Life
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