Shares of HDFC Life Insurance Company fell by more than 3% following the release of its Q2 FY25 financial results. The company announced a robust market share of 11.0% and impressive growth in its Value of New Business (VNB), which increased by 17.4%. The strong performance was driven by a 31% surge in new business premium (individual APE), supported by a 22% rise in the number of policies sold and a balanced product mix.
Despite the topline growth, HDFC Life’s VNB margin fell to 24.3%, missing market expectations. The CNBC-TV18 poll had projected a VNB margin of 25.37%, and the company’s margin also declined 201 basis points (BPS) compared to 26.31% YoY.
Key Financial Highlights:
- New Business Premium Growth: 31% YoY
- VNB: ₹1,656 crore
- AUM: ₹3.25 lakh crore, marking a 23% increase in H1 FY25
- VNB Margin: 24.3%, down from 26.31% YoY
The company continues to focus on profitable growth and expanding its market presence, but the decline in margins has raised concerns among investors, leading to the drop in stock price.
As of today’s trading session, HDFC Life shares were down 3.04%.
