HDFC Life Insurance Company Limited reported robust financial performance for Q3 FY25, reflecting solid growth in key metrics.
Highlights for Q3 FY25:
- Total Income:
- ₹16,914.07 crore, compared to ₹26,695.93 crore in Q3 FY24, showing a focused shift towards sustainable business growth.
- Net Premium Income:
- ₹16,914.07 crore, marking stability compared to ₹16,919.23 crore in Q3 FY24.
- Profit After Tax (PAT):
- ₹414.94 crore, up from ₹365.06 crore in Q3 FY24, showcasing a strong 13.7% YoY increase.
- Assets Under Management (AUM):
- ₹3,286.8 crore as of December 31, 2024, reflecting an 18% YoY growth.
Performance Overview:
HDFC Life demonstrated resilience in an evolving market landscape. The 13th-month persistency ratio improved to 87%, underlining strong policyholder retention and satisfaction. The solvency ratio stood at a comfortable 188%, well above the regulatory requirement.
Performance Highlights:
- Topline Growth:
Delivered strong individual Annualized Premium Equivalent (APE) growth of 24%, supported by a 15% increase in the number of policies sold and a balanced product mix. - Market Share:
Increased by 70 basis points (bps) to 10.8%, with the private sector market share at 15.3%. - Value of New Business (VNB):
Grew by 14% to ₹2,586 crore, reflecting strong profitability. - Persistency:
- 13th-month persistency: 87% (up 110 bps YoY)
- 61st-month persistency: 61% (up 780 bps YoY), indicating strong customer retention.
- Embedded Value (EV):
Grew by 18% to ₹53,246 crore, with a 16% operating return, highlighting sustained long-term value creation. - Solvency Ratio:
Stood at 188%, comfortably above the regulatory threshold of 150%. - Employee Focus:
Recognized as one of India’s Top 50 Best Workplaces for Women and featured in Business Today’s BT500 list of India’s Most Valuable Companies.
Key Commentary:
CEO Vibha Padalkar emphasized the company’s adaptability to market challenges and its commitment to delivering value through innovative insurance solutions. The company continues to strengthen its position with a diversified product mix and robust distribution network.
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