HDFC Life Insurance Company Share Price

Founded in: 2000 Managing director: Vibha Padalkar

HDFC Life Insurance Company Ltd

Ever since it started, HDFC Life Insurance Company Limited has been making big strides in India's financial scene. It’s one of the top life insurance companies in the country. The company got its start back in 2000 as a joint venture between Housing Development Finance Corporation Limited (HDFC Limited) and Abrdn plc, which used to be called Standard Life Aberdeen plc.

A major turning point in the Indian life insurance market was reached with the founding of HDFC Life, which combined the extensive worldwide experience of Standard Life with the knowledge of HDFC, a well-known housing financing organisation.

Early History and Growth Trajectory

The corporation was incorporated as a Public Limited company in Mumbai on August 14, 2000. On October 12, 2000, it received the Certificate of Commencement of Business. The Insurance Regulatory and Development Authority of India (IRDAI) then granted HDFC Life its Certificate of Registration on October 23, 2000, enabling it to conduct life insurance business in India.

From the start, this company concentrated on providing a wide variety of insurance products that addressed different market categories, such as health, annuity, investment, pension, savings, and protection.

The journey of HDFC Life has been marked by consistent growth, strategic expansions, and the introduction of innovative products designed to meet the evolving needs of its customers.

By 2003, the company reached an important milestone in signing 10,000 independent agents and more than 1 lakh insurance sold. To further enhance its penetration into the market, HDFC Life embarked on establishing collaborations with other banks, including HDFC Bank.

Strategic Product Innovations and Milestones

In the field of life insurance, HDFC Life immediately made a name for itself as a leader in product innovation. The business launched unit-linked solutions in 2004, enabling clients to purchase life insurance and participate in the debt and stock markets. This marked a significant change in the industry as investors looking for a combination of investing and insurance began to favour unit-linked insurance plans (ULIPs).

Over the following ten years, the organisation achieved important milestones as it expanded its policyholder base and assets under management (AUM). HDFC Life had more than 5 lakh policies by 2007 and more than ₹20,000 crore in AUM by 2010. The company's emphasis on offering creative solutions that satisfied the various demands of Indian customers drove its expansion. With a profit of Rs 271 crore in 2012, HDFC Life demonstrated profitability as a result of its sound operational plans and efficient risk control procedures.

One of the big highlights around this time was HDFC Life rolling out HDFC Life Credit Protect. This product offers term insurance coverage for retail loans. It was a hit among consumers who, especially with loan commitments, wanted to make sure their families would stay financially stable if something unexpected happened to them.

Expansion of Product Portfolio and Geographic Reach

HDFC Life started to broaden its business into other sectors as it kept adding new products to its lineup. To administer pension funds under the National Pension System (NPS), the business established HDFC Pension in 2012 as a completely owned subsidiary. In terms of subscribers and assets under management, HDFC Pension was the second-biggest private pension fund management business in India in 2017.

HDFC Life took calculated steps to broaden its global scope. HDFC International, the company's first overseas affiliate in the United Arab Emirates, was founded in 2016 to conduct business in the reinsurance sector. The purpose of this action was to increase HDFC Life's worldwide visibility and provide it access to new revenue sources.

Additionally, Standard Life Mauritius's ownership of HDFC Life increased from 26% to 35% in 2016. This demonstrated the increasing confidence in the business's prospects for the future and its capacity to provide long-term development.

Initial Public Offering (IPO) and Listing on Stock Exchanges

HDFC Life hitting the stock market with its Initial Public Offer (IPO) in FY 2018 was a really big deal for the company. The IPO allowed the public to buy into the company as its promoters, Standard Life (Mauritius Holding) 2006 Limited and Housing Development Finance Corporation Limited, put up 299,827,818 equity shares for sale. The shares started trading on November 17, 2017, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The IPO was a major success, reflecting the strong brand equity and market confidence in HDFC Life. In addition to giving the business more funding, the listing raised its profile in the financial markets. After the IPO, HDFC Life went public, and investors started to pay attention to the company's stock performance, especially since it kept demonstrating steady increases in new business premiums and overall profitability.

Continued Expansion and Innovation

HDFC Life launched several new products in FY 2019 to further strengthen its solid base. These included the HDFC Life Pension Guaranteed Plan, a deferred pension single premium annuity plan, and HDFC Life Sanchay Plus, which was created to satisfy the rising demand for guaranteed income. By the end of FY 2019, the company offered its clients full coverage with 34 individual products, 11 group products, and eight riders.

In addition, HDFC Life received many accolades during this period, such as the 2018 Economic Times Great Place to Work award, which reinforced its focus on developing a positive workplace culture and attracting top talent to the industry.

The company's new business premium increased by 15% in FY 2020 to ₹17,238 crore. The company maintained its leadership position within the group segment, recording a growth of 20% to end at ₹8,775 crore. As a result of HDFC Life's excellent market position and capacity to handle difficult market conditions, the total premium increased by 12% to ₹32,707 crore.

The stable growth exhibited by the company is effectively showcased in the HDFC Life Insurance company share price, making it a lucrative investment option for long-term investors.