HDFC Life Insurance Company reported a 14 percent increase in net profit for Q3 FY25, reaching Rs 415 crore compared to Rs 365 crore in the year-ago period. The life insurer's net premium income grew by 10 percent year-on-year to Rs 16,771 crore from Rs 15,235 crore, according to its stock exchange filings.
Ahead of the results, HDFC Life shares fell 1.1 percent today to end at Rs 593.7 on NSE.
HDFC Life exceeded market expectations on key metrics. Its Annualised Premium Equivalent (APE) rose 15.5 percent to Rs 3,686 crore, surpassing the anticipated Rs 3,626 crore, per a Moneycontrol poll of brokerages. Similarly, the Value of New Business (VNB) grew 17.8 percent to Rs 1,009 crore, ahead of the forecasted Rs 908 crore. The VNB margin, a critical measure of profitability, improved sequentially to 27.4 percent.
The insurance major's assets under management (AUM) expanded by 18 percent year-on-year to Rs 3.3 lakh crore. Persistency ratios showed significant improvement, with the 13th-month persistency ratio at 87 percent and the 61st-month ratio rising to 61 percent. The solvency ratio remained robust at 188 percent, well above the regulatory minimum of 150 percent.
Also read | Brokerages divided on Nifty 50's latest entrants Trent and BEL
Vibha Padalkar, Managing Director and CEO of HDFC Life, said that the insurer's growth in terms of the individual WRP (weighted received premium) was at 22 percent for the nine months ending December, outpacing overall industry growth of 14 percent. "We have witnessed both ticket size and volume expansion during this period. The number of policies has grown by 15 percent, outperforming the private sector's growth of 9 percent," she said.
HDFC Life said that regarding distribution, the insurer has an agency network of over 2.4 lakh agents, maintaining its position among the top three private life insurers in terms of agency strength. Additionally, it has about 90 bancassurance partnerships. It said that its tie-ups with banks, NBFCs, and digital ecosystems help it broaden its market reach.
The company also reported a well-diversified product portfolio, with unit-linked products contributing 37 percent, non-par savings at 35 percent, and protection at 6 percent of individual APE.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
