HDFC Life Q4 Results: PAT Soars 15% To Rs 411 Cr; Rs 2/Share Dividend Declared

On April 18, private insurer HDFC Life Insurance announced a net profit of Rs 411 crore for the January-March quarter of the fiscal year (FY) 2023-24. This is a 14.8% growth over the Rs 358 crore earned during the same time the previous year. The insurer's net premium income jumped to Rs 20,488 crore in Q4FY24 from Rs 19,426 crore in Q4FY23, a 5.4% growth. The quarterly annualised premium equivalent (APE) of the firm was Rs 4727 crore, down from Rs 5162 a year earlier.

The insurer's value of new business (VNB) decreased by 18.3% to Rs 1234 crore, while its VNB margin for the quarter totaled Rs 1234 crore. According to the corporation, its solvency ratio jumped from 203% to 187% in the previous year.

The Board of Directors "Recommended final dividend of Rs 2/- per equity share of face value of Rs 10 each for the financial year 2023-24, subject to approval of the shareholders at the ensuing Annual General Meeting (AGM). Record date for the purpose of ascertaining the entitlement of the shareholders to the final dividend shall be Friday, June 21, 2024. The payment of final dividend will be made on or after July 20, 2024, subject to deduction of tax at source at applicable rate," said HDFC Life Insurance Company in a regulatory filing today.

Commenting on results for the full year ended March 31, 2024, Ms. Vibha Padalkar, MD & CEO said, "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 Rs. 1,000 crore in March 2023. Our stated aspiration of a double-digit growth for the full year was achieved with us clocking an 11% growth for FY24, on a normalised basis. We achieved individual APE growth of 1% on an unadjusted basis. 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."

"FY24 has been another landmark year for product launches, fuelled by relentless innovation and a desire to help meet our customers' evolving requirements. Click2Achieve, our first DIY non-par savings solution has been received well across channels, leading to a healthy increase in the non-par savings proportion in the last quarter. Our new business margins are 26.3%. Value of new business is Rs. 3,501 crore, implying a 2 year CAGR of 14%. Embedded value stands at Rs 47,468 crore, with an operating return on embedded value of 17.5%. We have delivered a strong profit after tax of Rs. 1,569 crore, implying a YoY increase of 15%, fuelled by 18% increase in profit emergence from back book. Solvency continues to be healthy at 187%," she further added.

"In addition to business developments, we would like to inform that Mr 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. Being the founder Chairman of our Company, Mr Parekh has been instrumental in guiding and nurturing the Company over the past 24 years. We thank Mr Parekh for the immense contributions made by him and wish him the very best for the future," stated Vibha Padalkar.

"We are also pleased to inform that the Board has unanimously approved the appointment of Mr Keki M Mistry as the Chairman of the Board. Mr Keki M Mistry has been associated with the Company since December 2000 and is currently a Non-Executive Director on our Board. Under his stewardship, we aim to achieve many more remarkable milestones and emerge stronger and more resilient than ever before. Lastly, we are proud to share that we have been recognized as the Best Organization for Women in 2024 by The Economic Times. This is a testament of the progress we have made in creating a supportive work environment for women and our unwavering belief in the power of diversity, equity and inclusion," the MD & CEO further commented.