HDFC Life Q4 results: PAT increased 14% YoY, total income surges 30%

HDFC Life Insurance Company Limited on Thursday, April 18, reported nearly 14% rise year-on-year in its consolidated net profit at ₹411.64 crore for the March quarter of the financial year 2023-24.

The private life insurer had reported a profit after tax of ₹361.97 crore in the year-ago quarter. HDFC Life shares jumped more than 3% to hit a high of ₹624 apiece on the NSE after the impressive results.

HDFC Life reported a 30% jump in its total income to ₹27,945 crore in the March quarter compared to ₹21470 crore in the year ago period.

The life insurer reported a strong 54% jump in net premium income to ₹20,533,71 crore in the last quarter of FY24 compared to ₹19,468.6 crore in Q4FY23.

“Despite the budget changes impacting high-ticket sized business this year, we delivered a healthy growth of 20% for Q4 after adjusting for the one-off business of ₹ 1,000 crore in March 2023,” HDFC Life said in a statement.

Renewal collections grew by 18% YoY, demonstrating our customers' continued trust in us. Persistency for the 13th month and 61st month was 87% and 53%, respectively.

In its quarterly earnings report, HDFC Life stated that the company’s new business margins stood at 26.3%. Value of new business grew to ₹3,501 crore, implying a 2-year CAGR of 14%. Embedded value stood at ₹47,468 crore, with an operating return on embedded value of 17.5%, in the March quarter.

“We have delivered a strong profit after tax of ₹1,569 crore, implying a YoY increase of 15%, fuelled by 18% increase in profit emergence from back book,” the insurer said.

For the full FY24 fiscal, the company reported around 15% growth in profit after tax to ₹1,574.08 crore against ₹1,368.28 crore in FY23.

HDFC Life reported a flat total Annual premium equivalent (APE) at ₹13,291 croe in FY24 against ₹13,336 crore in FY23.

New business premium (individual and group) rose 2% to ₹29,631 crore in FY24 against ₹29,085 crore in FY23. Renewal premium increased 18% to ₹33,445 crore in FY24 as against ₹28,448 crore in FY23.

HDFC Life’s total assets under management (AUM) jumped 22% to ₹2,92,220 crore in FY 24 against ₹2,38,782 crore in FY23.

HDFC Life said that Deepak Parekh has decided to step down as the Chairman and Non-Executive Director of the company with effect from close of business hours on April 18, 2024. The Board has unanimously approved the appointment of Keki Mistry as the Chairman of the Board, the insurer said.

Shares of HDFC Life were trading 1.01% higher at ₹610.7 apiece on the NSE at 2:44 pm.