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HDFC Life and ICICI Lombard are valued in different ways.
HDFC Life is valued on embedded value and ICICI Lombard on estimate withheld, because the two businesses do not work the same way. Below, each is set out on its own record and its own value drivers; the two fair values sit in the full valuations.
- Valuation method: HDFC Life on embedded value; ICICI Lombard on estimate withheld.
- Size: HDFC Life is worth about 1.5 times ICICI Lombard on the stock market.
- What to watch: value of new business at HDFC Life; combined ratio at ICICI Lombard.
| HDFC Life | ICICI Lombard | |
|---|---|---|
| Price | ₹592 | ₹1,691 |
| Market cap | ₹1.29L Cr | ₹0.85L Cr |
| P/E | 62.9 | 33.1 |
| P/B | 7.25 | — |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Embedded value | Estimate withheld |
01Two businesses
A bank-backed private life insurer
HDFC Life Insurance is one of India's largest private life insurers and a subsidiary of HDFC Bank since the HDFC merger in 2023. It sells savings, protection, annuity and pension policies, much of it through HDFC Bank's branches, along with agents and other partners. It merged Exide Life into itself in 2022.
Insurance for cars, health and businesses
ICICI Lombard General Insurance, part of the ICICI group, is India's largest private general insurer. It sells motor, health, travel, home and commercial insurance through agents, banks, brokers and its own digital channels. It merged with Bharti AXA General Insurance in 2021.
02The records side by side
Full ten-year tables and charts are on each company's page: HDFC Life · ICICI Lombard.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Value of new businessHow much value each year's new policies add is the main driver of growth.
- New-business marginsProtection and non-participating products earn more than plain savings policies.
- Combined ratioClaims and costs as a share of premiums; below 100% means underwriting profit.
- Premium growthHealth and motor insurance demand is growing with the economy.
05What could go wrong
- RegulationRules on commissions and surrender values can squeeze margins.
- Tax changesChanges to tax breaks on insurance savings can reduce demand.
- Claims spikesNatural disasters or health shocks raise claims.
- Price competitionRivals can underprice to win share.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is HDFC Life or ICICI Lombard better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, HDFC Life trades at 62.9 times earnings and 7.25 times book value, and ICICI Lombard at 33.1 times earnings — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between HDFC Life and ICICI Lombard?
HDFC Life Insurance is one of India's largest private life insurers and a subsidiary of HDFC Bank since the HDFC merger in 2023. ICICI Lombard General Insurance, part of the ICICI group, is India's largest private general insurer.
Are HDFC Life and ICICI Lombard valued the same way?
No. HDFC Life is valued on embedded value and ICICI Lombard on estimate withheld, because forcing one model onto both would misstate at least one of them.
What does today's price assume for HDFC Life and ICICI Lombard?
Worked backwards from the share price, HDFC Life needs about 16.5× new-business multiple and ICICI Lombard about 35.0% return on equity, against 25.0× and 40.0% in their own records.