Preview: India's HDFC Life trades lower ahead of Q1 earnings

HDFC Life Insurance

15/07/2024 05:26

** Shares of HDFC Life Insurance Co  HDFL.NS  down 0.5% at
633 rupees ahead of its quarterly results 
    ** Analysts at Kotak Institutional Equities have HDFC Life
among top picks; expect annualised premium equivalent (APE) to
rise 24% in Q1 aided by rise is sale of market-linked plans
(ULIPs) amid strong performance of equity markets
    ** Jefferies expects HDFL's APE to rise 17% y/y
    ** However, value of new business (VNB) margin to remain
under pressure as ULIPs are low-margined products
    ** Kotak and Jefferies expect a 130 basis points and 80
basis points decline in insurer's VNB margin, respectively  
    ** Life insurers are trying to cushion margins by increasing
focus on term and savings plans - Kotak    
    ** HDFL shares are down nearly 2% YTD vs 13% rise in Nifty
50 index  .NSEI 

 (Reporting by Nishit Navin in Bengaluru)
 ((nishit.navin@thomsonreuters.com;))