The Financial Performance Analysis of An Insurance Sector with Special Reference to HDFC Life Insurance

Abstract

The act of performing a task or function, carrying out an activity, or achieving a goal is known as performance. The financial analyst tries to assess the company's liquidity, profitability, and other signs that the business is run in a sensible and regular manner, ensuring enough returns to the shareholders to preserve at least its market worth. The financial statements are analysed and interpreted as part of financial performance analysis. To determine the effectiveness and performance of the company's management, as seen in the financial records and reports, is the main aim of this research study. To research HDFC Life Insurance Company Pvt Ltd biography and roles in Understanding managerial aptitude and performance effectiveness and to assess HDFC Life Insurance Company Pvt Ltd solvency using annual financial reports are the objectives of the study. Data from HDFC Life Insurance Company Limited for the five years from 2018 to 2022 have been considered for the study's purposes. the ROA drastically dropped to 0.62% in 2022, showing that the company's profitability had fallen and it was not making enough money from its assets.        The balance sheet as a whole demonstrates that the company's shareholders' money has grown along with its non-current and current assets. However, current obligations have slightly decreased. The rise in other long-term obligations is mostly to blame for the rise in non-current liabilities.