“HDFC Life always at the forefront of product innovation,” says HDFC Life Insurance MD & CEO.Neha Kshirsagar
Update on the Indian Equity Market:
On Tuesday, NIFTY closed 0.4% higher than the previous close. Cipla (+3.0%), ICICI Bank (+2.5%) and Infosys (+2.4%) were the top NIFTY50 gainers. Titan (-10.1%), Bharti Airtel (-3.4%) and ONGC (-1.3%) were the top NIFTY50 losers. NIFTY Realty (+2.3%), Nifty Pvt Bank (+1.4%) and Nifty Bank (+1.2%) were the top sectors that closed positive. NIFTY PSU Bank (-0.9%), NIFTY Media (-0.5%) and NIFTY Auto (-0.2%) were the worst-performing sectors.
“HDFC Life always at the forefront of product innovation,” says HDFC Life Insurance MD & CEO.
Excerpts from an interview with Mrs. Vibha Padalkar, Managing Director & CEO, HDFC Life Insurance broadcasted on CNBC- TV18 on 6th November 2019:
- HDFC Life insurance continues to gain market share & remain number one in the private sector space. The Company has gained market share by 220 bps in 1HFY20.
- The Company has reported a growth of 38% on Effective Premium Income in the first half of FY20. Thus, there was a 65% YoY growth in the 1QFY20 on the back of their product called ‘Sanchay Plus’. In 2Q the Company reported a growth of 19% which according to her is not moderate by any means.
- HDFC Life has a balance in its product mix as well as in the distribution. In a particular quarter, one might have something that is topical like a product launch or some focus because of the overall sentiment in the markets. However, on a full-year basis, the Company will come back to the balance and that is exactly what HDFC life has started demonstrating.
- The non-par savings product contributed about 68% in 1QFY20 which came down sharply in 2Q at an exit rate of 41%. The Company expects to end the year between 30% to 35% contribution from non-par saving products.
- HDFC Life is confident of delivering growth of 25-27% in the value of new business for the next two years on the back of:
a) Tying up with new partners and expanding a new ecosystem partner,
b) Product innovation. HDFC Life has always been at the forefront of product innovation, according to the MD.
c) Operational savings by reducing the fixed costs as a percentage of new business.
- Regarding exposures of insurance companies to the non-banking financial companies (NBFCs) sector, the Company had one which is the IL&FS which has been written down fully. There is no other NBFC exposure.