HDFC Life Insurance Q1 net profit jumps 15% on-year to Rs 479 crore; meets estimates

So far this year, shares of HDFC Life declined over 1 percent, as against 11 percent rise in the benchmark Nifty 50 index

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26 Aug, 2025 12:21

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Private sector insurer HDFC Life Insurance’s Q1 FY25 net profit jumped 15 percent on-year to Rs 479 crore, helped by strong growth in both first year premiums and renewal premiums. The net profit met Street estimates. A Bloomberg survey of three brokerages had pegged HDFC Life’s fiscal first quarter net profit at Rs 478 crore.

The private sector life insurer’s net premium income for the April-June quarter came in at Rs 12,548 crore, up 9 percent from Rs 11,508 crore in the corresponding period previous year.

The company’s annualised premium equivalent (APE), which is a measure of new business written by a life insurance company, grew 23 percent, just shy of market expectations of a 24 percent growth. The APE stood at Rs 2,866 crore for the quarter.

HDFC Life’s new business (VNB) margin, which is the present value of future profits associated with new business written during the quarter, shrunk 120 basis points. The markets expected the new business margin to fall 130 basis points.

The new business margin for the quarter stood at 25 percent. The value of new business (VNB) jumped 18 percent on-year to Rs 718 during April-June.

Niraj Shah, executive director and chief financial officer (ED and CFO), in an interaction with Moneycontrol said that VNB margins did see some pressure but the insurer is confident of reporting good VNB growth. "Our VNB margins contracted in this quarter but we are okay with what we have delivered on the VNB side. And we look forward to maintaining our margins on a range-bound zone rather than having some big changes and look for a 17-18 percent growth,” Shah said in an exclusive conversation with Moneycontrol.

On the product mix, Shah said that the insurer will look at increasing its unit linked insurance plans (ULIP) among its product mix in this fiscal due to its rising demand.

Following the earnings, shares of HDFC Life extended gains, and closed for trading at Rs 638.05 apiece on BSE at 3.30 pm.