HDFC Life Q2 net profit jumps 15% on-year; robust premium income helps insurer beat Street

HDFC Life Insurance Company declares Q2 FY25 results.

HDFC Life Q2 FY25 net profit jumped 15 percent year-on-year to Rs 433 crore, beating Street expectations, led by healthy premium collections and investment income. The insurer's net premium income for the July-September quarter rose 12.3 percent on-year to Rs 16,570 crore.

A Bloomberg poll of analysts pegged HDFC Life's fiscal second quarter net profit at Rs 416.2 crore and 'revenue' at Rs 17,735 crore.

The firm earned Rs 3,253 crore in first year premiums during the quarter, up 27 percent from a year ago. It also collected 8,831 crore in renewal premium in Q2, rising about 13 percent from that in the same quarter previous year.

Assets under management of the company stood at Rs 3.25 lakh crore as on September 30, which saw an increase of 23 percent in the first half of the current financial year.

Value of new business grew by 17.4 percent to Rs 1,656 crore, reflecting a focus on writing profitable business, as per press release.

Solvency ratio of the company stood at 181 percent, comfortably above the regulatory threshold of 150 percent. Post the subordinate debt raise of Rs 1,000 crore on October, solvency stood at 191 percent, release added.

"The private sector and overall industry continued its strong momentum in Q2, growing in H1FY25 by 24 percent and 21 percent, respectively on an individual weighted received premium basis. We have outperformed the private sector by growing at 28 percent during this period and 19 percent on a 2 year CAGR basis," Vibha Padalkar, Managing Director and CEO of HDFC Life was quoted saying in a release.