Back
Results - Analysis
Improving margins and market share
HDFC Life Insurance Company
18-Apr-2025, 08:47
HDFC Life Insurance Company, on consolidated basis, has recorded 15% increase in net profit to Rs 475.36 crore in the quarter ended March 2025 (Q4FY2025). The total premium income has increased 15% to Rs 24,032 crore in Q4FY2025, driven by 15% jump in the renewal premium collection to Rs 13,063 crore. Further, the new business premium also increased 15% to Rs 10,969 crore. APE moved up 10% to Rs 5,186 crore as individual APE increased 9% to Rs 4,633 crore in Q4FY2025.
The company has exhibited an improvement in the persistency level with 13th month persistency remaining healthy at 87% in Q4FY2025 from 87% in Q4FY2024, while 61st month persistency jumped to 63% from 53%. The value of new business (VNB) galloped 12% to Rs 1,376 crore in Q4FY2025. New business margin for FY2025 stood at 25.60% showing jump on sequential basis from 25.10% for 9MFY25 while eased from 26.30% in FY2024. The embedded value surged 17% Rs 55423.0 crore end March 2025. An operating return on embedded value rose on sequential basis to 16.70% for FY2025 up from 16.00% in 9MFY2025, while moved up from 16.5% in FY2024. AUM of the company increased 15% to Rs 336,282 crore end March 2025 from Rs 292,220 crore end March 2024 crore and also moved up from Rs 328,684 crore a quarter ago. The consolidated Networth stood at Rs 15,708 crore end March 2025, while the solvency ratio of the company was at 194% end March 2025. Embedded Value per share stood at Rs 257.4 per share at end March 2025. Vibha Padalkar, Managing Director and CEO of HDFC Life, commented: 'FY25 was a year where we deepened our reach, continued sharpening our value propositions and demonstrated the resilience of our business model. We are happy to report an 18% growth in Individual APE for FY25, in line with our stated growth aspirations for the year. Our overall industry market share expanded by 70 bps to 11.1% and by 30 bps to 15.7% within the private sector. Retail protection continued to show strong momentum with APE growth of 25%. All channels registered double-digit growth. We continue to enhance customer experience through intuitive digital platforms, with over 90% of service requests now handled via self-service. As we enter our 25th year of existence, our aspiration remains, against a backdrop of a stable regulatory regime, to consistently outpace sector topline growth, deliver VNB growth in line with APE growth and double key metrics every 4 to 4.5 years.'
HDFC Life Insurance Company, on consolidated basis, has recorded 15% increase in net profit to Rs 475.36 crore in the quarter ended March 2025 (Q4FY2025). The total premium income has increased 15% to Rs 24,032 crore in Q4FY2025, driven by 15% jump in the renewal premium collection to Rs 13,063 crore. Further, the new business premium also increased 15% to Rs 10,969 crore. APE moved up 10% to Rs 5,186 crore as individual APE increased 9% to Rs 4,633 crore in Q4FY2025.
The company has exhibited an improvement in the persistency level with 13th month persistency remaining healthy at 87% in Q4FY2025 from 87% in Q4FY2024, while 61st month persistency jumped to 63% from 53%. The value of new business (VNB) galloped 12% to Rs 1,376 crore in Q4FY2025. New business margin for FY2025 stood at 25.60% showing jump on sequential basis from 25.10% for 9MFY25 while eased from 26.30% in FY2024. The embedded value surged 17% Rs 55423.0 crore end March 2025. An operating return on embedded value rose on sequential basis to 16.70% for FY2025 up from 16.00% in 9MFY2025, while moved up from 16.5% in FY2024. AUM of the company increased 15% to Rs 336,282 crore end March 2025 from Rs 292,220 crore end March 2024 crore and also moved up from Rs 328,684 crore a quarter ago. The consolidated Networth stood at Rs 15,708 crore end March 2025, while the solvency ratio of the company was at 194% end March 2025. Embedded Value per share stood at Rs 257.4 per share at end March 2025. Vibha Padalkar, Managing Director and CEO of HDFC Life, commented: 'FY25 was a year where we deepened our reach, continued sharpening our value propositions and demonstrated the resilience of our business model. We are happy to report an 18% growth in Individual APE for FY25, in line with our stated growth aspirations for the year. Our overall industry market share expanded by 70 bps to 11.1% and by 30 bps to 15.7% within the private sector. Retail protection continued to show strong momentum with APE growth of 25%. All channels registered double-digit growth. We continue to enhance customer experience through intuitive digital platforms, with over 90% of service requests now handled via self-service. As we enter our 25th year of existence, our aspiration remains, against a backdrop of a stable regulatory regime, to consistently outpace sector topline growth, deliver VNB growth in line with APE growth and double key metrics every 4 to 4.5 years.'
Financial Performance FY2025
HDFC Life Insurance Company has posted 15% increase in the net profit to Rs 1810.82 crore on consolidated basis in FY2025. Total Premium increased 13% to Rs 71050 crore in FY2025, aided by renewal premium income growth of 13% to Rs 37680 crore, while new business premium income also grew 13% to Rs 33370 crore. Value of New Business increased 13% to Rs 3962 crore and new business margin eased to 25.6% in FY2025 from 26.3% in FY2024.'
| HDFC Life Insurance Company: Results Consolidated Policyholders Account | ||||||
| ' | 2503 (3) | 2403 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Premium earned (net) | 23842.99 | 20533.71 | 16 | 69836.97 | 62112.05 | 12 |
| Income from Investments | 18.99 | 7253.87 | -100 | 25954.80 | 38363.16 | -32 |
| Other income | 77.93 | 78.65 | -1 | 284.93 | 336.40 | -15 |
| Contribution from the Shareholders` account | 25.46 | 90.50 | -72 | 107.30 | 144.12 | -26 |
| Total Income | 23965.37 | 27956.73 | -14 | 96184.00 | 100955.73 | -5 |
| Commission | 2583.90 | 2163.80 | 19 | 7844.47 | 5262.09 | 49 |
| Op. expenses related to Insurance business | 1726.97 | 1778.24 | -3 | 6250.77 | 6936.22 | -10 |
| Others | 167.68 | 120.59 | 39 | 571.54 | 318.32 | 80 |
| Benefits paid (Net) | 11096.52 | 12458.47 | -11 | 39497.73 | 39804.90 | -1 |
| Change in valuation of policy liabilities | 8209.63 | 11159.58 | -26 | 41554.58 | 48443.67 | -14 |
| Provision for taxation | 14.49 | -0.29 | PL | -588.20 | -592.39 | -1 |
| Total Expense | 23799.19 | 27680.39 | -14 | 95130.89 | 100172.81 | -5 |
| PAT | 166.18 | 276.34 | -40 | 1053.11 | 782.92 | 35 |
| Transfer to Shareholders` account | 249.52 | 306.27 | -19 | 1006.94 | 806.87 | 25 |
'
| HDFC Life Insurance Company: Results Consolidated Shareholders Account | ||||||
| ' | 2503 (3) | 2403 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Amounts transferred from Policyholders` account | 249.52 | 306.27 | -19 | 1006.94 | 806.87 | 25 |
| Income from investments | 328.67 | 253.70 | 30 | 1129.97 | 1006.59 | 12 |
| Others | 20.17 | 16.61 | 21 | 71.13 | 58.95 | 21 |
| Total income | 598.36 | 576.58 | 4 | 2208.04 | 1872.41 | 18 |
| Expenses (apart from Insurance) | 75.06 | 35.53 | 111 | 210.22 | 154.15 | 36 |
| Contribution to policyholders account | 25.46 | 90.50 | -72 | 107.30 | 144.12 | -26 |
| Others | 11.90 | 0.57 | 1988 | 12.58 | 4.47 | 181 |
| Total Expenses | 112.42 | 126.60 | -11 | 330.10 | 302.74 | 9 |
| PBT | 485.94 | 449.98 | 8 | 1877.94 | 1569.67 | 20 |
| Tax | 10.58 | 38.32 | -72 | 67.12 | -4.41 | PL |
| PAT | 475.36 | 411.66 | 15 | 1810.82 | 1574.08 | 15 |
| EPS (Rs)* | 8.8 | 7.6 | ' | 8.4 | 7.3 | ' |
| EV (Rs) | 257.4 | 220.7 | ' | 257.4 | 220.7 | ' |
| * on current equity of Rs 2152.99 crore of face value of Rs 10 each | ||||||
| PL: Profit to Loss, LP: Loss to Profit | ||||||
| Figures in crore, Source: Capitaline Corporate Database | ||||||
Powered by Capital Market - Live News