Earnings Review
HDFC Life Jan-Mar PAT up 16% YoY as premium income rises
This story was originally published at 18:00 IST on 17 April 2025
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--HDFC Life Jan-Mar net profit INR 4.77 bln
--HDFC Life Jan-Mar net profit INR 4.77 bln vs INR 4.12 bln yr ago
--HDFC Life Jan-Mar net premium income INR 237.66 bln vs INR 204.88 bln
--HDFC Life FY25 net premium income INR 696.16 bln vs INR 619.59 bln yr ago
--HDFC Life FY25 net profit INR 18.02 bln vs INR 15.69 bln year ago
--HDFC Life new business margin at 25.6% in FY25 vs 26.3% year ago
--HDFC Life value of new business INR 39.62 bln in FY25, up 13% on year
--HDFC Life AUM at INR 3.36 tln as on Mar 31, up 15% on year
--HDFC Life FY25 renewal premium income INR 376.80 bln, up 13% on year
--HDFC Life FY25 total annual premium equivalent INR 154.79 bln, up 16% YoY
--HDFC Life 13th month persistency ratio 87% as on Mar 31 vs 87% year ago
--HDFC Life solvency ratio 194% as on Mar 31 vs 187% year ago
--HDFC Life to pay INR 2.10 per share final dividend
By Kshipra Petkar
MUMBAI – HDFC Life Insurance Co. Ltd.'s net profit for Jan-Mar rose on year due to an increase in the net premium income. The net profit of the life insurer was up 15.8% on year to INR 4.77 billion in the latest quarter. Sequentially, the bottom line was up 14.9%. For the financial year ended Mar. 31, net profit was INR 18.02 billion, higher as compared to INR 15.69 billion reported a year ago.
The net premium income in Jan-Mar was INR 237.66 billion as compared to INR 204.88 billion reported a year ago. On a quarter-on-quarter basis, the net premium income rose by a sharp 41.7%. For FY25, net premium income was INR 696.16 billion as compared to INR 619.59 billion a year ago.
Within gross premium income, the first year premium rose 9.5% on year to INR 43.96 billion, renewal premiums were up 14.5% on year to INR 130.63 billion, and single premiums increased 19.15% on year to INR 65.73 billion in the quarter ended March. Sequentially, all the three segments under gross premiums saw a sharp rise.
"We are happy to report an 18% growth in Individual APE (annualised premium equivalent) 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," Vibha Padalkar, managing director and chief executive officer of HDFC Life commented in a press release.
Individual annualised premium equivalent for the 12 months ended March grew 18% on year to INR 136.19 billion and the total annualised premium equivalent grew 16% on year INR 154.79 billion for the same period.
The value of new business rose 13% on year to INR 39.62 billion in FY25. Value of new business margins fell slightly to 25.6% for the 12 months ended March from 26.3% a year ago.
The new business premium, which includes individual and group premiums, rose 13% on year to INR 333.65 billion for FY25. The assets under management of the life insurance company rose 15% on year to INR 3.36 trillion as on Mar. 31.
Expenses of the life insurance company also rose in Jan-Mar. Net commissions rose 19.4% on year to INR 25.81 billion. In the previous quarter, the net commissions were INR 19.32 billion. Within net commissions, those for first year premium grew 59.88% on year and renewal premiums grew merely 5.3% on year. However, commissions for renewal premiums fell sharply by 63.8% on year.
Under the operating expenses related to insurance business, the employees' renumeration and welfare expenses were up 16.8% on year to INR 8.6 billion. Other operating expenses fell on year by nearly 17% on year to INR 8.5 billion, but rose 18.7% on quarter.
The solvency ratio of the life insurance company stood at 194% as on Mar. 31, comfortably above the regulatory threshold of 150%. The 13th month persistency ratio on a premium basis was 82.7% for the three months ended Mar. 31, higher as compared to 81.9% the previous quarter. For FY25 the 13th month persistency ratio was 87%. The persistency ratio shows the proportion of business renewed from the business underwritten.
The board of directors have approved the appointment of Vineet Arora as additional wholetime director, designated as executive director and chief business officer, effective from May 1, for a term of three years. His appointment is subject to approval of the Insurance Regulatory and Development Authority of India and the shareholders of the company.
The board has recommended a final dividend of INR 2.10 per share. Thursday, HDFC Life Insurance Co. shares closed at INR 720.05 on the NSE, up 0.56% over Wednesday. End
Edited by Deepshikha Bhardwaj
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