Good news for 23 lakh policyholders at HDFC Life, insurer to pay highest ever bonus of ₹3,660 cr; details here
2 min read 17 May 2023, 02:26 PM ISTHDFC Life declares highest ever bonus of ₹3,660 crore for more than 23 lakh policyholders. By issuing bonuses, the company is rewarding the loyalty of policyholders.
PremiumPrivate sector life insurance major, HDFC Life has announced highest ever bonus to the tune of ₹3,660 crore on participating policy plans. A total of 23.14 lakh policyholders are eligible for this bonus.
As per the statement, from the total bonuses, about ₹2,696 crore will be payable to policies in this financial year, as a bonus on maturing policies or as cash bonuses.
Meanwhile, the rest of the bonus amount will be payable in the future upon policy cessation by way of maturity, death claim, or surrender pay-outs.
Vibha Padalkar, MD & CEO, HDFC Life commented, "As a life insurer, we cater to four key risks of mortality, morbidity, longevity, and interest rate through our innovative products and services that enable individuals to live a ‘Life of Pride’."
CEO added, "We are pleased to announce an increase in the bonus declared for our valued policyholders. This is our way of rewarding the loyalty of our policyholders as we continue to do our part to secure India, financially."
Under the bonus issue, participating or par plans are life insurance policies that provide the policyholder with profit-sharing benefits in the form of bonuses.
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That means, participating policies are those in which policyholders share in the upside of the investment surplus and include popular plans such as HDFC Life Guaranteed Insurance Income Plan and HDFC Life Sanchay Par Advantage.
In its research note dated May 16th, Kotak Institutional Equities said, "HDFC Life reported 7% growth in individual APE, 6% overall APE and gaining market share by 90 bps yoy to 10.4% in the individual business. Momentum at HDFC Bank and growth in other channels are the likely drivers," adding, "Based on a four-year CAGR, HDFC Life was up 12% (industry up 13%) in April 2023."
That being said, the brokerage has recommended 'Buy' on HDFC Life's share price for a target price of ₹725 apiece.
On Wednesday, HDFC Life's share price traded at ₹557.70 apiece marginally down on BSE compared to the previous figure of ₹559.45 apiece. The stock ranged from ₹562.45 apiece to ₹552.50 apiece in the intraday trade.
In a month, HDFC Life's share price has gained by at least 4.5% on BSE.
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HDFC Life is a joint venture between HDFC Ltd., India’s leading housing finance institution and abrdn (Mauritius Holdings) 2006 Limited, a global investment company.
The life insurer is a leading, listed, long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as Protection, Pension, Savings, Investment, Annuity, and Health.
Currently, HDFC Life has over 60 products (including individual and group products) and optional riders in its portfolio, catering to a diverse range of customer needs.
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