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Informist, Tuesday, Jul. 15, 2025

 

By Kabir Sharma

 

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--HDFC Life Apr-Jun net profit INR 5.46 bln 
--HDFC Life Apr-Jun net profit INR 5.46 bln vs INR 4.78 bln year ago 
--HDFC Life Apr-Jun net premium income INR 144.66 bln vs INR 125.10 bln 
--HDFC Life solvency ratio 192% as on Jun 30 vs 186% year ago 
--HDFC Life 13th month persistency ratio on premium basis 82.7% as on Jun 30 
--HDFC Life: AUM at INR 3.559 tln as on Jun 30, up 14.7% on year 
--HDFC Life value of new business INR 8.09 bln in Apr-Jun, up 12.7% on year 
--HDFC Life new business margin 25.1% in Apr-Jun vs 25.0% year ago 
--HDFC Life: Saw healthy growth across top line, value of new business in Q1 
--HDFC Life: Saw steady margins in Apr-Jun 

 

MUMBAI – A steady growth in net premium income and assets under management helped HDFC Life Insurance Co. Ltd. to report a 14.4% year-on-year growth in its net profit for the Apr-Jun quarter. The insurer reported a net profit of INR 5.46 billion for the quarter, up from INR 4.78 billion a year ago. The bottom line was also supported by a growth in "backbook profits," the insurer said. 

 

The company announced the earnings after market hours. Shares of HDFC Life Insurance closed 1% lower at INR 756.85 on the National Stock Exchange.

 

The net premium income of the company rose 15.6% on year to INR 144.66 billion in Apr-Jun, with the individual annualised premium equivalent growing by 12.5% year-on-year. Sequentially, however, the net premium income fell 39% with both the first-year premium and the renewal premium falling 42?ch. 

 

The impact of a fall in premiums was contained due to a fall in commissions paid. Net commission fell over 32% from the previous quarter to INR 17.49 billion in Apr-Jun. However, year-on-year net commissions rose 19%. 

 

Under the operating expenses related to insurance business, the employees' remuneration and welfare expenses rose 26% on year to INR 8.75 billion in Apr-Jun. Other operating expenses rose nearly 11% on year to INR 6.35 billion, but were down 26% on quarter.

 

Assets under management of the company rose to INR 3.56 trillion as on Jun. 30, up nearly 15% on year. 

 

"We anticipate a gradual shift, rather than a sharp swing in favour of traditional products over the course of the year.... our aspiration is to continue to outpace industry growth whilst sustaining our position as a market leader amongst the top 3 in India," Vibha Padalkar, managing director and chief executive officer of HDFC Life said in a press release. 

 

The new business margin of the company rose to 25.1% in the reporting quarter from 25.0% year ago. Value of new business rose to INR 8.1 billion in Apr-Jun from INR 7.2 billion a year ago. 

 

The solvency ratio of the life insurance company stood at 192% as on Jun. 30, comfortably above the regulatory threshold of 150%. The 13th-month persistency ratio on a premium basis was 82.7% for the three months ended Jun. 30, unchanged from the previous quarter. The persistency ratio shows the proportion of business renewed from the business underwritten.

 

In the product mix, unit-linked plans continue to dominate with a 38% share at the end of the quarter. "Contrary to initial expectations, demand for ULIPs remained strong, supported by sustained strength in equity markets. However, our ULIP mix remains lower than the industry and broadly range-bound," Padalkar said.  End

 

Edited by Saji George Titus

 

 

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