Life insurance is projected to observe huge growth in India, led by increasing requirements of financial safety among increasing middle-class people and younger population middle. Due to rising presence of agents, brokers, banks, and aggregators, direct, and online channels has smartly increased life insurance. The insurance sector is supported by a strong regulator whose aim is to have insurance for every person living in India by 2047, with 100 years of independence. The life insurance sector plays a key role in managing long-term savings, providing safety and long-term income and annuity solutions to fulfill requirements of customers groups. It is projected that by 2035, about 1 billion individuals will be in insurable bracket within age group of 20 to 64 years, highlighting the requirement for long-term savings and protection plans. With rapid growth in middle-class households, an increasing workforce, and better financial literacy integrated with proper access to information and awareness, reaching depth in market is projected to rise for insurance.
If we compared to developed countries, the major portion of India is under-insured, both in terms of density and penetration. Out of developing countries, penetration of India towards life insurance is very low at 3.2%. The “protection gap” in India is very high at global level at 91%, as increment in savings and life insurance coverage in terms of policies is very slow and wage growth.Compared to developing countries, the sum assured as a % of GDP in India is very low which shows that there is shortage of insurance protection.
Insurance protection in India has appeared as different from other countries, moulded by choices of consumers and habits, regulatory guidelines and shifting economic landscape.
The life insurance sector is consistently improving in last decade with private players attaining market share in terms of individual WRP. There has been important changes in distribution approach along with product portfolio with technology playing main role. During FY 23-24, the life insurance sector achieved 2% growth and attained new business premium income of Rs 3780 billion compared to Rs 3,705 billion in FY 22-23.
Private insurers saw a growth of 8% based on individual weighted received premium (WRP) whereas group business saw increment of 20%. The private insurers achieved market share of 68% in individual business which was higher compared to FY 22-23. Building multiple channels of distribution and product improvement has been main factor increase in market share of private insurers in individual business which has grown from 38% in FY 13-14 to 68% in FY 23-24.
HDFC Life Insurance Company – Key Points
Name of Promoter
HDFC Bank Ltd
Industry
Insurance
Established
2000
Headquarters
Mumbai
Employees
32,486
Number of individual policy issued
11.7 lakh
Solvency margin
187%
Total premium
Rs 63,076 crores
Overall claim settlement ratio
99.7%
HDFC Life Insurance Company – Statistics
Market cap
Rs 1,35,067 crores
ROCE
6.61%
ROE
11.4%
Assets under management (AUM)
Rs 2.92 lakh crores
No. of lives covered
6.6 crores
No. of Branches
535
No.of lives impacted
16.32 lakh
Book value
Rs 73.4
HDFC Life Insurance Company Ltd
HDFC Life Insurance Company Ltd is listed on stock exchange promoted by HDFC Bank Ltd which is one of the top banks in India. On 31st March, 2024, HDFC Bank acquired 50.375 stake in HDFC Life established in year 2000. HDFC Life is top player in providing long-term life insurance solutions provider in India, providing variety of individual and group insurance solutions that fulfill customers requirements such as savings, investments, protection, health, annuity, pensions.
As on 31st March, 2024, the company had a product basket of 83 products which consists of individual and group products and 13 optional riders fulfilling requirements of different customers. HDFC Life receives many benefits by establishing strong footprint in different parts of the country, having a wide distribution network of 535 branches and distribution touchpoints through various collaborations and partnerships. The company has collaborated with over 300 partners including both traditional partners such as Micro Finance Institutions, Non-Banking Financial Companies (NBFCs), and Small Finance Banks (SFBs) along with new ecosystem partner. The company has strong network of 2 lakh agents. The subsidiaries are:
HDFC Pension – HDFC Pension Management Company Ltd a wholly owned subsidiary of HDFC Life Insurance Company Ltd, commenced its business on August 2013. It is rapidly increasing PFM (Pension Fund Manager) under the NPS architecture with an AUM of Rs 76,955 crore as on 31st March, 2024. In FY 2019-20, HDFC Pension commenced its operation as a Point of Presence (PoP) in both retail and corporate NPS sector.
HDFC International – HDFC International Life & Re, a wholly owned subsidiary of Dubai International Finance Centre completed 8 years of its establishment and has increased its presence across GCC and MENA region.
The company made consistent investment by diversifying distribution channels and entering into new collaborations with traditional as well as new age partners. In FY 23-24, the company entered into agreement with Karnataka Bank and Karur Vysya Bank. The company achieved counter share at HDFC Bank, by receiving benefit due to strong relations, launching of new products, solutions based on technology and rise in manpower support in new branches.
The company is excited to increase its footprint across bancassurance partners and increased its sales network in bank branches while developing strong tie-up through various initiatives such as bespoke training, blockbuster products, and on-ground connection.These efforts help to improve customer values and experiences. The company added more than 80,000 agents in FY 23-24 as part of business to invest in developing a strong Proprietary franchise.
The systematic approach to increase proprietary channel focuses on building strong distribution channel by increasing branches, grabbing attention of distributor and making consistent investing in new technologies and developing capacity.
On 31st March, 2024, the AUM of HDFC Pension Management Company has surpassed Rs 76,000 crore by gaining market share of 41%. The company has made best effort to build superior product propositions and customer journey through constant growth and development. In order to improve customer experience, the company took different steps to increase access, making simple process for buying and enhance operational efficiency.
The company has launched “Insta Insure”, a smooth and unique solution developed to onboard eligible customers of our partners with pre-approved sum assured with minimal underwriting. It offers end-to-end direct journey for customers, minimize turnaround time and faster issuance, and an adaptable frontend which is simple to add at any level. The talented team conducts analysis of business risks by utiling information, taking genuine actions for those crossing risk tolerance. The company enters into partnership with outside entities like credit bureaus, IIBs, and research firms for strong risk analysis. HDFC Life appoints IIB Quest for real-time data quality checking, industry protection. This tool identifies fraud cases connected with undisclosed financial, medical, and demographic information. Moreover, we use an amazing tool for checking IT, operational, fraud, and business continuity risks, providing top management an overview of main risks involved.
The company has setup extensive risk database spanning 6 years, including policy benefits, customer demographics, features, and mortality data. This important data acts as foundation for various activities, including the dashboard of Mortality risk and Claims Early warning Indicator, encouraging accurate risk and generating detailed reports.
The company has invested in skills of risk team including, data analytics, actuarial science, risk modelling, forensic analysis. These skills improve product pricing and investment portfolio risk management. The company provides constant internal and external training to keep them updated on life insurance concepts, assuring detailed checking and efficient mitigation planning.
The Direct channel at HDFC Life includes of BCSS, Loyalty, Maturity, Inside Sales and capitalises on cross sell and up sell opportunities within our current customer base, thus straight away selling policies to customers by taking benefit of analytical tools to decide their preferences.
Business is searched via online and offline medium including branch walk-ins, feet-on-street, call centre, digital touchpoints, and focuses on cross sell/ upsell to consumers through several campaigns including discontinued and unclaimed to increase customer acquisition. The company provides service to customers through genuine collaborations encouraged with National brokers with legacy of selling insurance alongwith non conventional partners that consists of wealth setups, mutual fund distributors, equity broking firms, and so on. The category based distributors adopt unique client acquisition strategy, which in turn offers width and detailed of landscape. The channel pays attention on face to face selling via customized sales strategy and customer based product solutions.
HDFC Life Insurance Company Ltd – Past journey
In year 2001, HDFC Life was first private insurer to start its business in India.
In year 2002, the company became first private insurer to declare bonus along with founder’s bonus and HDFC Life company collaborated with HDFC Bank.
In FY-2003, HDFC life stated vision and value of organisation. The company achieved 1 lakh policies and 10,000 financial consultants.
In year 2004, the company launched Unit Linked Insurance Products (ULIP) and after 1 year in 2005 the company launched brand tagline “Sar Utha Ke Jiyo”.
In year 2006, the company started online premium payment facility and amazing customer service helpline and in year 2007, the company issued 5 lakh policies.
In year 2008, the company increased distribution of 1 lakh consultants and employee strength reached to 15,000.
In 2009, the company launched 1st product in health sector-Criticare and Surgicare.
In year 2010, Brand was relaunched with new logo and identity as “HDFC Life” and Total assets under Management reached Rs 20,000 crore.
On 20th June 2011, the company established wholly owned subsidiary – HDFC Pension to manage pension fund business under National Pension System.
In year 2012, Maiden profit was declared and total premium reached Rs 10,000 crores in whole year.
In year 2013, the company declared maiden dividend in December and launch of Click 2 Buy – Point of Sale underwriting system.
In year 2014, company launched our values framework – EPICC, launched fresh channels like DSC, Defence and AUM reached Rs 50,000 crore mark.
In year 2015, company introduced My Mix Tool to encourage sales team to pitch solutions more efficiently. The company began Smart Achievers program in connection with Manipal University.
In Year 2016, the company incorporated first subsidiary in UAE-HDFC International Life & Re to manage the business of reinsurance. In the same year, company’s total premium attained Rs 16,000 crore mark.
In year 2017, the company came out with IPO which was huge success and was subscribed over 3.8 times. On 17th November, 2017, the company was listed on NSE and BSE.
In year 2018, the AUM surpassed Rs 1 lakh crore mark. S & O Global gave rating of BBB to HDFC International Life and Re by making one of the best 5 companies of India rated higher than sovereign rating of India.
In year 2019, the company made changes in its name from “HDFC Standard Life Insurance Company Ltd” to “HDFC Life Insurance Company Limited”.
In July 2020, HDFC Life became new member of Nifty 50 Index. The company insured lives of 6 crore people.
In year 2021, the Embedded value of company surpassed Rs 25,000 crore. At 21st ICSI National Awards for Excellence in Corporate Governance, HDFC Life was awarded with ” Best Governed Company Listed Segment: Large Category.
On October 2022, HDFC Life completed Merger and Acquisition transaction in Indian Life Insurance segment with esrtwhile Exide Life. HDFC Life became signatory to United Nations- encouraged guidelines for Responsible investment.
In year 2023, HDFC Life appeard in “Leadership” list of Indian Governance Scorecard.
In year 2024, Assets under Management of company surpassed Rs 2.92 lakh crore. The company announced bonues to 23 lakh policy holders amounting to Rs 3,660 crores which was highest till date. HDFC International Life and Re (DIFC) opened its international branches in GIFT city under brand name “HDFC International Life”. The company attained leadership position for 3 consecutive year in Indian Corporate Governance Scorecard 2023. The company also achieved “Golden Peacock Award” for Excellence in Corporate Governance 2023.
Business segments of HDFC Life
The company provides protection, retirement, long-term savings, pension products to individual customers and group customers. These products are combined under 63 segments Unit Linked Insurance Plan (ULIP), Participating (PAR), and Non- Participating (Non-Par). A detailed guidance of each product category is explained below:
Non-linked Segments: This includes traditional products that offer genuine insulation from market-related risks. This segment is divided into par and non-par segments.
Non-Linked Participating segment – This segment includes insurance contracts that take part in surplus received from the segment, during the period of the contract. The policyholder has right to receive 8/9th generated from this category, which is added to the policy in the form of bonuses. The shareholder’s share of surplus is 1/10th of the bonus decided for the policyholders.
Non-Linked Non Par segment – This sector includes insurance contracts which do not take part in surplus received from this category. The surplus received from this sector is transferred to Shareholder’s Profit & Loss account on suggestion by the Appointed Actuary by the company.
Revenue and Net profit
Particlulars
FY 23-24 (In crores)
Sales
101,482
Expenses
100,951
EBITDA
531
Other income
525
interest
0
Depreciation
79
Profit before Tax
977
-Tax (%)
(-67%)
Net profit
1574
EPS (Rs)
7.32
Shareholding Pattern (Dec. 2024)
Promoters
50.32%
FIIs
25.14%
DIIs
13.72%
Public
10.76%
Others
0.03%
HDFC Life Insurance Company Ltd – Watch Video
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HDFC Life Insurance Company Ltd Share Price Target – 2024 to 2040
Year
Minimum price (Rs)
Average price (Rs)
Maximum price (Rs)
2025
637
666
695
2026
733
799
865
2027
872
956
1039
2028
1046
1158
1269
2029
1276
1367
1458
2030
1468
1501
1534
2035
2935
3030
3125
2040
8805
8909
9012
HDFC Life Insurance Company Ltd Share Price Target – 2025
If market faces bearish sentiments, the minimum projected price is anticipated to reach Rs 637. The average trading price is projected to hit Rs 666 at the mid of the year. If market observes bullish signals, the maximum forecasted price is anticipated to hit Rs 695. HDFC Life has given importance to modern technology predominant to build a strong future. Data analytics and AI will encourage to revolutionize risk measurement, improving fraud monitoring, and streamline underwriting processes. Technology provides safe and crystal means for issuing policy, settlement of claims, building trust among stakeholders.
HDFC Life Insurance Company Ltd Share Price Target – 2026
If market observes downward trends, the minimum forecasted price is expected to reach Rs 733. The average trading price is projected to hit Rs 799 at the mid of the year. If market observes bullish sentiments, the maximum projected price is anticipated to touch Rs 865. In past few years, HDFC Life has achieved consistent growth and profit by using proper strategy. It has increased its distribution network though an improved agent base along with increased tie-ups with new partners to achieve multiple growth opportunities. Moreover, a complete set of products which is properly balanced, tech-integrated platforms, and a customer-based strategy has encouraged company to provide best service and unique insurance plans as per customers’ requirements.
HDFC Life Insurance Company Ltd Share Price Target – 2027
If market faces bearish sentiments, the minimum projected price is anticipated to touch Rs 872. The average trading price is forecasted to hit Rs 956 at the mid of the year. If market observes bullish signals, the maximum forecasted price is anticipated to touch Rs 1039. In India, there is very less consumption of life insurance, the necessity of proper coverage is important. HDFC Life has build awareness by conducting initiatives and interacting with sales team, customers, and partners. HDFC Life launched campaign “Mission Life” to present among Indians that life insurance is not necessity but important for everyone. The campaign included 100+ channel partners and creative initiatives like “Life sessions” with ET now. The Life sessions reached 21 million + people and attained 5 million + views.
HDFC Life Insurance Company Ltd Share Price Target – 2028
If market observes downward trends, the minimum projected price is expected to touch Rs 1046. The average trading price is projected to hit Rs 1158 at the mid of the year. If market observes bullish signals, the maximum forecasted price is expected to touch Rs 1259. HDFC Life gives equal chances to all. The contribution made by women is 26.9% of our team. The company is proud on being recognised as “Great place to work”. The company has established huge distribution channel, connection of brokers, D2C channels, proprietary channels, bancassurance. To develop strong relationships with new entities such as payment banks, small finance banks, MFIs, virtual community to increase geographical presence. The company provides wide variety of products to serve customer base.
HDFC Life Insurance Company Ltd Share Price Target – 2029
If market observes downward trends, the minimum projected price is anticipated to reach Rs 1276. The average trading price is projected to hit Rs 1367 at the mid of the year. If market observes bullish signals, the maximum forecasted price is expected to hit Rs 1458. Collaboration is main element in developing a future based insurance company. The company has smartly entered into systematic partnerships to open opportunities of growth. Developing strong supply chain, developing union with distribution partners with certain focus on geography and customer divisiopn wil support us to enter in the market.
HDFC Life Insurance Company Ltd Share Price Target – 2030
If market observes bearish signals, the minimum projected price is anticipated to hit Rs 1468. The average trading price is projected to hit Rs 1501 at the mid of the year. If market observes bullish sentiments, the maximum projected price is anticipated to touch Rs 1534. The company is taking benefit of its strength to provide best experience to customers. The requirements of customers are changing and their engagement with brands have seen huge growth. The company believes that best customer experience goes beyond service touchpoints. The company has a dream to be customer based organisation through simple product communication, smooth journeys, and designing a product by researching consumer.
HDFC Life Insurance Company Ltd Share Price Target – 2035
If market faces bearish sentiments, the minimum projected price is expected to reach Rs 2935. The average trading price is projected to hit Rs 3030 at the mid of the year. If market observes bullish signals, the maximum projected price is estimated to hit Rs 3135. The company follows strict guidelines in performing business. The purpose is to develop best quality product and build customer journey with consistent growth. The company took different steps to increase accessibility, make easier the buying process, and increase efficiency in business.
HDFC Life Insurance Company Ltd Share Price Target – 2040
If market observes bearish sentiments, the minimum forecasted price is estimated to hit Rs 8805. The average trading price is projected to reach Rs 8909 at the mid of the year. If market faces bullish sentiments, the maximum projected price is estimated to hit Rs 9012. The company will remain focused to build better products to fulfill needs of different customer base. Digital technology will improve customer experience. Technology is very important for growth in organisation.
FAQs
Q1) Who is promoter of HDFC Life Insurance Company Ltd?
Ans – The promoter of HDFC Life Insurance Company Ltd is HDFC Bank Ltd with a stake of 50.37%.
Q2) Which sector is HDFC Life Insurance Company Ltd?
Ans – The company is private sector company involved in life insurance business.
Q3) Who is the competitor of HDFC Life Insurance Company Ltd?
Ans – The competitors are: General Insurance Company Ltd, Go Digit Genreal Insurance Company Ltd, Life Insurance Company Ltd, ICICI Lombard General Insurance Company Ltd, Star Allied and Health Insurance Company Limited, SBI Life Insurance Company Ltd.
Q4) What are the products of HDFC Life Insurance Company Ltd?
Ans – The products are: HDFC Life Click 2 Invest ULIP, HDFC Life Sampoon Nivesh, HDFC Life Smart Protect Plan, HDFC Life Click 2 Wealth.
Q5) Who is the Chairman of HDFC Life Insurance Company Ltd?
Ans – The Chairman of HDFC Life Insurance Company Ltd is Mr. Keki M. Mistry.
Q6) Is HDFC Life Insurance Company Ltd a debt-free company?
Ans –Yes, HDFC Life Insurance company is almost debt-free company. The Long-term borrowings is Rs 950 crores. The cash and bank balance is Rs 1,257 crores. The net-debt is negative.
Q7) What is profit of HDFC Life Insurance Company Ltd?
Ans – The net profit of company in FY-24 is Rs 1,574 crores.
Q8) Is HDFC Life Insurance a good stock?
Ans –Yes, HDFC Life Insurance company is good share for long-term purpose. The revenue of company in FY-13 was Rs 14,060 crores which has increased to Rs 101,482 crores. The net profit of company in FY-13 was Rs 447 crores which has increased to Rs 1,574 crores.
