Project Inspire: 'Future Proofing' HDFC Life
12
Emergence of Existing Business (EB) Surplus
Profit Emergence
EB Surplus emergence as a % of VIF
Traditional Savings
(Longer Tenure)
Protection
(Ind+Grp)
ULIP
0%-1%
20%-25%
20%-25%
30%-35%
55% - 60%
30%-35%
65%-70%
15%-20%
40%-45%
-
5 years ■5
15 years > 15 years
25%
25
24%
24%
30
30
20%
19%
45
32
35
32
Shift in product profile to longer term savings over last 3-4
years
Profit emergence is higher for longer tenure products, albeit
over a longer time frame
2
О 3/4th of profits emerge after 5 years
FY19
FY20
FY21
EB (In Bn)
FY22
EB as a % of VIF
FY23
Higher mix of long term profitable products to result in
profit emergence over longer time horizon
■ Track record of positive operating variance indicates high
likelihood of profit emergence as per assumptions
Profitable
distribution
Diversified
growth
first
Customer
management
Risk
Technology,
mix
& governance
Analytics
digital &
HDFC
LifeView entire presentation