ALM Strategy and Insurance Market Opportunities
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%
■0-5 years ■5-15 years ■> 15 years
25%
25
24%
24%
30
30
20%
19%
45
22
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
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