HDFC Life Insurance Q1 Results Highlights: Net Profit Iumps 15% on-year to ₹479 cr

Synopsis

HDFC Life Insurance's Q1 FY25 net profit increased by 15% year-on-year to ₹479 crore. Additionally, the net premium income for the April-June quarter rose by 9%, reaching ₹12,548 crore, compared to ₹11,508 crore in the same period last year. 

HDFC Life Insurance Q1 Results Highlights

Private sector insurer HDFC Life Insurance reported a 15% year-on-year increase in Q1 FY25 net profit, reaching ₹479 crore, driven by strong growth in both first-year premiums and renewal premiums. This result met Street estimates, with a Bloomberg survey of three brokerages predicting a net profit of ₹478 crore.

The company's net premium income for the April-June quarter was ₹12,548 crore, up 9% from ₹11,508 crore in the corresponding period last year.

HDFC Life's annualised premium equivalent (APE), a measure of new business written by the insurer, grew 23%, slightly below market expectations of 24% growth, reaching ₹2,866 crore for the quarter.

The new business (VNB) margin, which represents the present value of future profits from new business written during the quarter, decreased by 120 basis points. This was slightly better than market expectations, which anticipated a 130 basis points decline. The new business margin for the quarter was 25%. The value of new business (VNB) increased by 18% year-on-year to ₹718 crore during April-June.

Following the earnings announcement, HDFC Life share price rose, trading up 1.6% at ₹645.7 apiece on the NSE at 2:25 pm.

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HDFC Life Insurance Commentary

“Growth resurgence was experienced in Tier 1 markets whilst maintaining strong growth in Tier 2 and 3 geographies, which continue to account for a significant portion of the business,” it said in a regulatory filing. 

About HDFC Life Insurance

HDFC Life Insurance Company Ltd is an India-based life insurance company. The Company provides a range of individual and group insurance solutions across India. The portfolio comprises of various insurance and investment products such as protection, pension, savings, investment, annuity, and health. The Company offers long term savings, protection and retirement or pension products.