HDFC Life Q1 Results: Net profit rises 15% to ₹477.65 crore; Net premium income rises 8.9% to ₹12,509.62 crore

HDFC Life Q1 Results: HDFC Life Insurance Company Limited (HDFC Life) reported a 15 per cent rise in net profit for their April to June quarter at ₹477.65 crore on Monday, July 15, as compared to ₹415.34 crore in the same quarter the previous year.

The life insurance company's net premium income (NPI) rose 8.9 per cent to ₹12,509.62 crore in Q1FY2025, compared to ₹11,479.82 crore in Q1FY2024.

“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," said Vibha Padalkar, the managing director and chief executive officer of HDFC Life Insurance.

The private insurer's market share rose 0.7 per cent to 17.1 per cent in the first quarter of the financial year 2025, as compared to 16.4 per cent in the same quarter the previous year.

HDFC Life's shares closed 0.35 per cent higher at ₹637.85 after Monday's trading session, as compared to ₹635.60 on Friday. 

HDFC Life's total assets under management (AUM) have increased 22 per cent to more than ₹3.1 lakh crore at the end of the first quarter of FY2025 when compared with ₹2.5 lakh crore in Q1FY2024.

“The profitability remains healthy with average RoE2 and RoEV3 of 15.1% and 18.6%, respectively, in the last five years (FY2019-2023). The company’s solvency profile, supported by healthy internal accruals, remained comfortable at 1.90 times as on December 31, 2023, compared to the regulatory requirement of 1.50 times,” according to an ICRA ratings report dated April 15, 2024.

The ICRA report also said that if the promoter company HDFC Bank gets a rating downgrade or the life insurer becomes less strategically important for the promoter, it can impact the ratings of HDFC Life Insurance. Additionally, a decline in HDFC Life's solvency ratio below the level of 1.70 times on a sustained basis would be a negative factor for the insurer. 

The company plans to focus more on the Tier 2 and Tier 3 cities exposure in the upcoming quarters, according to the analyst presentation.