HDFC Life Q2 Results: Net Profit Surged 15% To Rs 433 Cr; Healthy Performance Across All Metrics

The HDFC Life Board of Directors approved and adopted the consolidated and standalone financial statements for the half-year that ended on September 30, 2024. The net profit of HDFC Life Insurance Co. increased by 15% year over year to Rs 433 Cr in the July-September quarter of the current fiscal year, up from Rs 377 Cr in the same period the previous year.

The company reported a net profit of Rs 911 crore was achieved in H1 FY25, reporting a steady growth of 15% year-on-year.

Vibha Padalkar, Managing Director and CEO of HDFC Life, said "The private sector and overall industry continued its strong momentum in Q2, growing in H1FY25 by 24% and 21% respectively on an individual weighted received premium basis. We have outperformed the private sector by growing at 28% during this period and 19% on a 2 year CAGR basis. We registered an increase of 22% in the number of policies, which was significantly ahead of the private sector growth of 13%. We experienced secular growth trends across Tier 1, Tier 2 and Tier 3 geographies."

"On the regulatory front, we have successfully relaunched more than 40 top products contributing to about 95% of the business, in alignment with revised regulations as on October 1, 2024 and we plan to relaunch other products during the course of the quarter. We are thankful to the regulator in allowing us an additional time of three months for transitioning to the new product regulations," Vibha Padalkar added.

"Furthermore, we are happy to inform that HDFC Life continues to be recognised for its commitment to sustainability and responsible governance. HDFC Life's S&P Global ESG score saw an improvement of over 20% versus last year and we continue to be rated well amongst regional insurers. Our MSCI ESG Rating has also been upgraded to 'A'," the CEO stated.

"We remain focused on driving sustainable growth and strengthening our leadership across key segments. We will continue to invest in customer-centric innovations to ensure we meet evolving needs and remain resilient in a dynamic market. We are confident in our ability to deliver long-term value for our stakeholders, whilst adapting to the evolving market landscape with agility and resilience," Vibha Padalkar further commented.

As of September 30, 2024, the assets under management (AUM) were valued at Rs 3.25 lakh crore, indicating a 23% annual growth. For the July-September quarter, the insurer's net premium income increased 12.3% year on year to Rs 16,570 crore. At the same time the previous year, it was Rs 14,756 crore. The company's robust 31% growth in individual APE (new business premium) was bolstered by a 22% rise in the number of policies sold and a well-rounded product mix.

The company said that its Solvency Ratio remained at 181%, well over the regulatory threshold of 150%, and that its Value of New Business (VNB) increased by 17.4% to Rs 1,656 crore, demonstrating the focus on generating lucrative business. Solvency was 192% following the subordinated debt issuance of Rs 1,000 crore on 9 October 2024.