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HDFC Standard Life Insurance Company IPO: All that you need to know -
HDFC Standard Life Insurance Company IPO: All that you need to know
HDFC Sec | Published: 07 Nov, 2017  | Source :

HDFC Life 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.8,869.2 million 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, it had total AUM of Rs.995.3 billion and Indian Embedded Value of Rs.140.1 billion. It has a track record of consistently delivering shareholder returns across business cycles. HDFC Life’s strong parentage and its trusted brand enhances its appeal to consumers. 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. It offers an attractive value proposition for distribution partners, as demonstrated by longstanding, successful relationships with its bancassurance partners through corporate agency or master policyholder arrangements

HDFC Life has a broad, diversified product portfolio covering five principal segments across the individual and group categories, namely participating, non-participating protection term, nonparticipating protection health, other non-participating and unit-linked insurance products. As at September 30, 2017, its product portfolio comprised 32 individual and ten group products, as well as eight optional rider benefits. It also provides it with the flexibility to operate successfully across business cycles, work with diverse sets of distribution partners and serve a range of consumers from mass market to high net worth individuals. It also provides HDFC Life with the flexibility to adapt to changes in the regulatory landscape and mitigate concentration risk in respect of particular categories or types of products. HDFC Life has a proven track record in identifying and tapping niche customer segments (such as with HDFC Life Cancer Care product) through its innovative product solutions that has continued to draw strong customer demand. In Fiscal 2016, it has established its first international subsidiary in the UAE, HDFC International, to operate its reinsurance business. Going forward, HDFC Life aims to continue to consolidate its position as a long-term player in the industry with its focus on better customer service, strong product propositions and steady profitability.

Objects of Issue:

The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and to carry out the sale of Offered Shares by the Selling Shareholders. The listing of Equity Shares will enhance the “HDFC Life” brand name and provide liquidity to the existing Shareholders. The listing will also provide a public market for Equity Shares in India. HDFC Life will not receive any proceeds from the Offer.

Insurance Riders

Riders offer additional protection and coverage via payment of a marginally higher premium. Any term insurance rider can be understood as an amendment to the actual term insurance policy. Riders are available for various purposes and can be chosen and attached to the base policy to reap extended benefits out of your term insurance policy

There are different types of riders- Accidental death/permanent disability benefit rider.

The policyholder receives benefits on an accident leading to death or permanent disability.

Critical illness rider – The rider is helps to protect the policy holder in the event of diagnosis of a critical illness during the term of the policy, where such illnesses are specified at the start of the contract.

Guaranteed insurability – The rider allows the insured to increase the cover as per the terms and conditions of the policy without further medical examination.

Term rider – Offers monthly income to nominee on death of life assured.

Waiver of premium rider – The policyholder is not required to pay future premiums on the policy in the event of an accident or mishap as defined by the rider.

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.