An Analytical Investigation on Financial Forecasting and Performance Analysis of HDFC Life Insurance

Abstract

The main objective of the study is to find out financial performance of HDFC Life insurance, for the period of 2005-2012. Further the study also involve in analyzing the liquidity position, ascertain profitability of HDFC, analyze the short term and long term solvency position of the life insurance. The researcher predicts the financial stability of HDFC life. The research methodology used in the study is descriptive research the method of data collection is secondary data is collected the annual reports from the HDFC Life. The analysis of the data is done by using simple statistical tools of ratio analysis and it is represented by means of chart. The liquidity position of the concern is positive. The company has maintained the current assets and current liabilities position effectively which means the current ratio is above the required ratio of 2:1. The liquid ratio and cash ratio of HDFC LIFE insurance are favorable and the organization can very well meet its current obligation. The profitability of the company is comfortable, which means that the company is making more profit, which are the basic requirements very effectively and properly maintained. It may be concluded that the organization’s overall financial performance is good.