IPO Note – HDFC Standard Life Insurance Company Limited by Ventura

HDFC Standard Life Insurance Co Ltd was one of the most profitable life insurers, based on Value of New Business (VNB) margin, among the top five private life insurers in India (measured on total new business premium) in Fiscal 2016 and Fiscal 2017. Besides consistently being among the top three private life insurers in terms of profitability based on VNB margin, it has also consistently been among the top three private life insurers in terms of market share based on total new business premium between Fiscal 2015 and Fiscal 2017. Its total new business premium for Fiscal 2015, Fiscal 2016, Fiscal 2017 and the six months ended September 30, 2017, was Rs 54,921.0 million, Rs 64,872.2 million, Rs 86,963.6 million and Rs 44,029.0 million. Between Fiscal 2015 and Fiscal 2017, its annualized premium equivalent grew by a CAGR of 14.5%. Its 13th month individual persistency ratio was 73.3%, 78.9%, 80.9% and 82.2% for the periods ended March 31, 2015, March 31, 2016, March 31, 2017 and September 30, 2017, respectively.


The company has a healthy balance sheet with total net worth of Rs 44.6 billion and a solvency ratio of 200.5% as at September 30, 2017, above the minimum 150.0% solvency ratio required under IRDAI regulations. It generated Profit After Tax of Rs 886.9 crore and delivered a Return on Equity of 25.6%, Return on Invested Capital of 40.7% and Operating Return on Embedded Value of 21.7% during Fiscal 2017. As at September 30, 2017, the company had a total AUM
of Rs 995.3 billion and Embedded Value of Rs 140.1 billion. It has an enviable track record of consistently delivering shareholder returns across business cycles. Its focus on creating a multi-channel distribution platform has resulted in its market share among private life insurers in India in terms of total new business premium increasing from 15.8% in Fiscal 2015 to 17.2% in Fiscal 2017.