HDFC Life posts 15% YoY rise in net profit at ₹478 crore; shares up over 1%

The VNB or value of new business for the quarter under review came in at ₹718 crore, up 18% on a YoY basis, as per the financial results declared by the company.

Shares of HDFC Life were trading over 1% higher at ₹642 apiece on the NSE post the result announcement.

Key highlights

• Market share expansion: Private market share expanded from 16.4% in Q1FY24 to 17.1% in Q1FY25, and the overall market share in Individual WRP (weighted received premium) increased to 11.4%, HDFC Life said.

• Retail sum assured growth: The company achieved 46% growth, bolstered by higher sum assured multiples for savings products and strong rider attachment and aided by 28% growth in retail protection.

• Assets Under Management (AUM): Surpassed ₹3 lakh crore, with a growth of 22%.

• Geographic growth: The company claimed that it recorded a strong topline growth across Tier 1, 2, and 3 geographies.

• Bonus declaration: HDFC Life declared its highest-ever bonus of ₹3,722 crore, to more than 22 lakh par policyholders.

The company further said that unit linked insurance plans (ULIPs) accounted for 38%, non-par savings for 35%, participating products for 16%, term for 6%, and annuities for 5%, based on individual annual premium equivalent (APE). The ULIP mix was initially elevated, but moderated during the quarter with the launch of products across other categories. Non-par products bounced back, clocking a 41% YoY increase.

The latest Click2Achieve variant garnered ₹100 crore of new business in merely 16 days, the company added.

Commenting on the results, Vibha Padalkar, MD & CEO, HDFC Life, said, “We have started the year on a strong note, achieving 31% YoY growth in individual APE, which implies a two-year CAGR of 21%. This robust growth is driven by a comprehensive performance across all metrics.

The CEO added, "We welcome the positive impact of IRDAI's progressive reforms that are expected to significantly strengthen the life insurance proposition in India, making it simpler, more transparent and ultimately more attractive to prospective customers."

Notably, HDFC Life's stock has slipped 1.52% year-to-date. In comparison, the benchmark NIFTY50 has gained 13%.