HDFC Life Insurance Company has released its financial results for the quarter ending September 30, 2024, showcasing significant growth in key metrics. The company posted strong performance on both standalone and consolidated levels, reflecting year-over-year (YoY) and quarter-over-quarter (QoQ) growth.
Standalone Financial Performance:
- Gross Premium Income: HDFC Life reported ₹1,692.74 crore, marking a 12% YoY increase from ₹1,514.88 crore in Q2 FY24 and a 6% QoQ rise compared to ₹1,596.21 crore in Q1 FY25.
- Net Premium Income: The net premium income stood at ₹1,565.40 crore, reflecting 15% YoY growth from ₹1,363.24 crore in Q2 FY24.
- Net Profit After Tax (PAT): The standalone PAT was ₹43.29 crore, up 15% YoY from ₹37.68 crore, though slightly down QoQ from ₹47.76 crore in Q1 FY25.
Consolidated Financial Performance:
- Net Premium Income: Consolidated net premium income increased to ₹1,684.21 crore, a 12% YoY rise.
- Consolidated PAT: The consolidated PAT reached ₹91.06 crore for H1 FY25, marking a 14.9% YoY growth.
Investment Income:
HDFC Life’s investment income surged to ₹2,573.51 crore in Q2 FY25, compared to ₹1,973.31 crore in Q2 FY24, while consolidated investment income grew 12% YoY to ₹52.6 crore.
Key Metrics Growth:
- First Year Premium: ₹325.35 crore, a 26.8% YoY increase.
- Renewal Premium: ₹883.10 crore, up 16.5% YoY.
- Single Premium: ₹484.29 crore, reflecting 8.3% YoY growth.
Citi’s Outlook:
Citi has maintained a buy rating on HDFC Life, setting a target price of ₹820, despite a 200 bps year-on-year decline in the value of new business (VNB) margins for Q2 FY25. The decline stems from a shift towards ULIPs and fewer annuities, along with a 100 bps impact due to deferred non-par repricing. Citi estimates a net decline of 70 bps in VNB margins.
Despite the margin contraction, HDFC Life’s management remains optimistic, targeting high-teens VNB growth driven by new policy growth. The company expects margins in the second half of FY25 to improve, supported by ongoing investments in agency channels and expansion into smaller markets.
