HDFC Life Q2 Results: Net profit rises 15% YoY to ₹433 crore; net premium income improves by 12%

HDFC Life Insurance Company on Tuesday, October 15 reported a net profit of ₹433 crore for the second quarter of fiscal 2025 (Q2 FY25), marking a 15% year-on-year (YoY) increase compared to ₹377 crore recorded in the same period last year. For the first half of FY25, too, the company posted a 15% YoY growth in net profit at ₹911 crore. 

During the quarter under review, the company reported a 12% YoY increase in net premium income to ₹16,570 crore from ₹14,756 crore in the same period the previous year.

The company's topline growth was driven by a robust 31% increase in new business premiums (individual APE) at ₹5,864 crore, supported by a 22% rise in the number of policies sold and a balanced product mix. 

Private sector market share (individual WRP) expanded by 60 basis points to 16.3% in H1FY25, with overall market share reaching a record 11%, the company said in an exchange filing today. The value of new business (VNB) also grew by 17.4% to ₹1,656 crore in H1FY25, reflecting the company's emphasis on profitable business writing. Furthermore, HDFC Life's assets under management (AUM) reached ₹3.25 lakh crore as of September 30, 2024, a YoY increase of 23%.

In the first half of the current fiscal year, the company's persistency ratios improved significantly, with the 13th and 61st-month ratios climbing to 88% and 60%, respectively. These increases—by 120 basis points and 730 basis points—highlight the company's strength in customer retention and engagement.

The company's embedded value (EV) surpassed ₹50,000 crore, with an operating return on EV of 16%, demonstrating sustained long-term value creation for policyholders and shareholders alike.

HDFC Life maintained a strong solvency ratio of 181%, well above the regulatory requirement of 150%. Following the issuance of ₹1,000 crore in subordinated debt on October 9, 2024, the solvency ratio rose to 192%, as per the company's earnings report. 

Vibha Padalkar, Managing Director and CEO of HDFC Life commented, “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 for allowing us an additional time of three months for transitioning to the new product regulations," Vibha added 

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