HDFC Standard Life Insurance Company Share Price

HDFC Life (HDFC Standard Life Insurance Company) is a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Aberdeen PLC. The private long-term insurance provider is headquartered in Mumbai.

HDFC Standard Life Market Capitalisation

The total market capitalisation of HDFC Life, as of March 2018, is more than Rs.85,000 crore.

Company’s Wealth and Recent Performance

  • The company’s profit after tax (PAT) for the Q3 FY18 grew 15% for the period ended December 31, 2017. It registered a strong growth of 60% in Individual Weighted Received Premium (WRP).
  • The private insurer’s total premium grew by 20% during Q3 FY18. This growth was attributed to a healthy renewal business growth of 9% and a strong new business growth of 33%.
  • In terms of Individual WRP, the company’s market share was 13%. The company paid an interim dividend of 14% that amounted to Rs. 3.3 billion including DDT (Dividend Distribution Tax).
  • With a market share of 18.4%, HDFC Standard Life is ranked at number 2 in terms of overall new business received premium. On the other hand, the company ranked number 1 in group business on received premium and grabbed a market share of 28.6%.
  • A 23% increase in net worth was reported by HDFC Life at Rs.43.6 billion as on period ended December 31, 2017.
  • The regulatory requirement of the solvency ratio is 150%. A solvency ratio defines an insurance company’s financial situation and HDFC Standard Life boasts a higher solvency ratio of 191%.
  • HDFC Life’s 13th month persistency was at 86% while 61st month persistency was at 53%. This depicted a steady improvement in the persistency ratio which shows how persistent customers have been in renewing their policies.
  • The company’s assets under management showcased consistent growth of 27% while the underlying debt: equity mix of 57:43.

HDFC Stock Trends in 2017 and 2018

  • HDFC Standard Life went public with an IPO (initial public offering) of Rs.8,695 crore. The stock was listed on November 17, 2017. The share price in November 2017 was close to Rs.285 on NSE and BSE.
  • The price of the the stock continued to increase throughout December 2017 at around Rs.380 as the company declared the Interim Dividend.
  • In mid January 2018, the share price reached around Rs.490 and it continued to fluctuate in February in the range of Rs.440. The fluctuation in the share price could have been attributed to changes in the board with appointment of directors.
  • On February 28, the closing share price of HDFC Standard Life Insurance was Rs.461.20. The stocks lost a little over 8% over the course of March to descend onto the levels above Rs.420. However, in the final week of the month, the scrip commenced a bull run which continued well into the month of April.
  • In the first week of April, the shares crossed the psychologically important mark of Rs.500. For most of the month, the shares were traded at levels above Rs.500. The scrip didn’t make any discernible gains in this period. The shares continued on the same trajectory in the month of May as well, with the HDFC Standard Life Insurance stocks eventually hitting their 52-week high at Rs.548.25.
  • This rise was followed by a gradual dip in the share price over the second half of May and June. The shares lost close to 15% in this period to drop down to their previous levels at Rs.470. Things stayed this way for most of July as well, with the shares trading hands at levels varying from Rs.450 - Rs.470.
  • In the final week of the month, the scrip rose once again to touch the Rs.500 mark although, the shares retreated back to their previous levels at Rs.460 almost immediately. The scrip moved on to lose marginally through August and as of September 10, the shares were seen trading at levels above Rs.450.

Should you invest in HDFC Standard Life?

  • As per CRISIL, HDFC Standard Life is one of the most profitable insurers considering the value of new business (VNB) in 2016 and 2017. In terms of market share, the company is among the top three private life insurance companies.
  • The company has a broad and diversified portfolio when it comes to product offering which includes protection health, participating, non-participating protection term, non-participating protection health and unit-linked insurance products.
  • Banks, small finance banks, NBFC (Non-banking financial companies), and micro-finance institutions are the bancassurance partners for HDFC Standard Life. As of September 2017, bancassurance partners have increased to 125 from 31 in March 2015.
  • A lower penetration in life insurance provides the company enough scope to expand its portfolio.
  • HDFC Standard Life is promoted by HDFC which is a renowned and well-trusted brand. It also has a healthy brand recall with Indian consumers.
  • The company is already focused on its digital efforts as more than 98% of its policies were submitted via digital medium. Going forward HDFC Life is planning to invest more in technology to encourage digital payment.
  • Thanks to the factors like a higher solvency ratio, higher profits and top ranking, investing in HDFC Life with a long term perspective may be a good idea.

Company Information

HDFC Standard Life Insurance Company has 414 branches and a presence in more than 980 cities and towns in India. Investment, Children and Women plans, Protection, Health, Pension, Savings are some of their prominent products. The company offers a total of 31 individual and 10 group products, as on June 2017. Furthermore, it even offers 8 optional rider benefits that cater to individuals at various stages of their lives. HDFC Pension Management Company Limited and HDFC International Life and Re Company Limited are the two wholly-owned subsidiaries of the company. The former is regulated by the Pension Fund Regulatory and Development Authority of India while the latter is regulated by the Dubai Financial Services Authority.

History of the Company

HDFC Standard Life was established in 2000 under the Companies Act 1956. It received IRDAI’s certificate of registration that enabled it to undertake life insurance business since October 2000. The company was first private sector life insurance company in India. As mentioned earlier, HDFC Life is a joint venture between HDFC and Standard Life where the former holds a share of 72.27% and latter holds 26% of the equity. The rest of the share is held by others. Offering an array of financial services worldwide, Standard Life is an investment company that is based in Edinburgh.

Management of the Company

Amitabh Chaudhry, MD and CEO

An alumnus of Indian Institute of Management (IIM) Ahmedabad, Amitabh has been a part of HDFC Life since January 2010. In his previous stint, he was working as the MD and CEO of Infosys BPO Ltd and even headed the testing unit of Infosys Technologies Ltd. His first stint started back in 1987 with Bank of America where he took over various roles such as Regional Finance Head for Wholesale Banking and Global Markets. Amitabh, who has a degree in Engineering from Birla Institute of Technology and Science (BITS) Pilani, also the Head of Technology Investment Banking for Asia and Chief Finance Officer at Bank of America.

Vibha Padalkar, Executive Director and Chief Financial Officer

A member of Institute of Chartered Accountants of India, Vibha has been with HDFC Life since August 2018. In addition to heading Internal Audit and Risk, Vibha looks after Secretarial and Compliance, Finance and Legal. She also oversees HDFC Pension, company’s pension subsidiary. Colgate Palmolive (India), WNS Global Services and PricewaterhouseCoopers are some of the company where Vibha worked before HDFC Life. Vibha is a qualified member of the Institute of Chartered Accountants in England and Wales.

HDFC Standard Life Limited Listing and Indices

One can buy and sell HDFC Standard Life stocks on any of the two stock exchanges - Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The company’s BSE Code is 540777 while the NSE Code is HDFCLIFE. HDFC Life represents the miscellaneous sector and the ISIN number is INE795G01014. HDFC Standard Life is part of the S&P BSE IPO.

Location

Registered Office

HDFC Standard Life Insurance Company Limited,

12th Floor, Lodha Excelus,

Apollo Mills Compound, N .M. Joshi Road,

Mahalaxmi, Maharashtra, Mumbai - 400 011 Telephone: (022) 67516666

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