The way HDFC Life Insurance shares are progressing. Seeing this, every investor wants to invest in HDFC Life Insurance. and analyst
Very excited about HDFC Life Insurance. Many reasons account for this. First, Standard Life, one of the promoters of HDFC Life Insurance, has reduced its stake in the company. This has been done to meet the standards of market regulator SEBI. This has allayed concerns regarding selling in the company’s shares.
Second, HDFC’s growth continues to be bullish. In the first 10 months of 2019-20, the company’s business premium has increased by 30 percent, while profits have increased by 20 percent. The compound annual growth rate (CGAR) of business premium and net profit in the last two financial years has been 20 per cent and 16 per cent respectively.
Seeing this, many investors want to invest in HDFC Life. The analyst believes that HDFC Life’s stock will see more growth. Because the company has lunched many such term life plans. So that customers will be attracted towards HDFC Life.
Third, life insurance penetration in India is still low compared to the global average. This is a good opportunity for private sector companies like HDFC Life. The company’s distribution network is strong. It also has a lot of products in its portfolio. With this, HDFC Life can grow at a much faster rate than the industry average in the coming years.
There has been one major complaint from analysts with HDFC Life. That is, it is excessively dependent on the parent company for the sale of its products. To tackle this issue, the company is diversifying its sales and marketing channels.