HDFC Life Insurance Company Limited reported a solid performance for Q3 FY25, driving a nearly 7% surge in its share price. The results highlighted robust growth in profitability, strong policyholder retention, and enhanced market share.
Key Financial Highlights:
- Total Income: ₹16,914.07 crore compared to ₹26,695.93 crore in Q3 FY24, reflecting a strategic focus on sustainable growth.
- Net Premium Income: ₹16,914.07 crore, steady compared to ₹16,919.23 crore in Q3 FY24.
- Profit After Tax (PAT): ₹414.94 crore, up 13.7% YoY from ₹365.06 crore.
- Assets Under Management (AUM): ₹3,286.8 crore, marking an 18% YoY growth.
Operational Highlights:
- 13th-Month Persistency Ratio: Improved to 87%, underlining strong customer retention.
- Market Share: Increased by 70 basis points to 10.8%, with a private sector share of 15.3%.
- Value of New Business (VNB): Grew by 14% to ₹2,586 crore.
- Embedded Value (EV): Increased by 18% to ₹53,246 crore, demonstrating long-term value creation.
- Solvency Ratio: A robust 188%, well above the regulatory threshold of 150%.
Brokerage Commentary:
HSBC reiterated a ‘Buy’ rating on HDFC Life, setting a target price of ₹750, citing:
- Strong sequential margin improvement.
- Limited impact of new surrender value norms (30 basis points).
- Sustained profitability from a balanced product mix and robust distribution networks.
CEO Commentary:
Vibha Padalkar, CEO of HDFC Life, emphasized the company’s adaptability in navigating market challenges while delivering innovative insurance solutions and sustaining growth through diversified product offerings.
TOPICS:
HDFC Life