HDFC Life Q2 Results: Profit Jumps 15%, Premium Income Surges

Quarter results of HDFC Life is announced its financial results for the second quarter of FY25, showcasing strong growth in net profit and premium income. The insurer’s net profit exceeded expectations, growing by 15% year-on-year to ₹433 crore, supported by healthy premium collections and increased investment income.

Quick Insights:

• Revenue: ₹16,570 crore, up by 12.3% YoY.
• Net Profit: ₹433 crore, a 15% increase compared to last year.
• Segment Performance: First-year premiums rose by 27%, reaching ₹3,253 crore, while renewal premiums increased by 13% YoY to ₹8,831 crore.
• Management's Take: "The robust growth in premium collections and investment income has driven strong financial performance. The outlook for continued growth remains positive."
• Stock Reaction: Shares was trading at ₹746 before result announced and then it down to & closed at approximately ₹714 post-results.

Hdfc life insurance Management Commentary  

Vibha Padalkar, Managing Director and CEO of Hdfc life insurance, commented: “The private sector and overall industry continued its strong momentum in Q2, growing in H1FY25 by 24% and 21% respectively on an individual weighted received premium basis. We have outperformed the private sector by growing at 28% during this period and 19% on a 2 year CAGR basis. We registered an increase of 22% in the number of policies, which was significantly ahead of the private sector growth of 13%. We experienced secular growth trends across Tier 1, Tier 2 and Tier 3 geographies.

On the regulatory front, we have successfully relaunched more than 40 top products contributing to about 95% of the business, in alignment with revised regulations as on October 1, 2024 and we plan to relaunch other products during the course of the quarter. We are thankful to the regulator in allowing us an additional time of three months for transitioning to the new product regulations. 

Furthermore, we are happy to inform that HDFC Life continues to be recognised for its commitment to sustainability and responsible governance. HDFC Life's S&P Global ESG score saw an improvement of over 20% versus last year and we continue to be rated well amongst regional insurers. Our MSCI ESG Rating has also been upgraded to ‘A’. 
We remain focused on driving sustainable growth and strengthening our leadership across key segments. We will continue to invest in customer-centric innovations to ensure we meet evolving needs and remain resilient in a dynamic market. We are confident in our ability to deliver long-term value for our stakeholders, whilst adapting to the evolving market landscape with agility and resilience.

Also check HDFC Shares - Group Stocks

Stock Market Reaction

Following the results announcement, HDFC Life share price saw a decline movement on BSE and NSE, indicating investor confidence in the company’s performance and growth trajectory.

About HDFC Life and Related News  

As one of India's leading life insurers, HDFC Life continues to perform above market expectations. The company's recent achievements include surpassing premium collection milestones and expanding its product portfolio to meet the evolving needs of its customers. Looking ahead, the company is expected to focus on leveraging digital platforms for further growth and enhancing customer experience.