Despite the budget changes impacting high ticket sized business this year, we delivered a healthy growth of 20 per cent for Q4 after adjusting for the one-off business of Rs. 1,000 crore in March 2023. Our stated aspiration of a double-digit growth for the full year was achieved with us clocking an 11per cent growth for FY24, on a normalised basis. We achieved individual APE growth of 1per cent on an unadjusted basis,” said Vibha Padalkar, MD & CEO said
Keki M Mistry to succeed Deepak Parekh as the chairman of the HDFC Life board
Mumbai:
HDFC Life Insurance, the second largest private sector life insurer, on Thursday reported a 14.7 per cent rise in net profit at Rs 412 crore in the fourth quarter ended March 2024.
The profit was Rs 359 crore in the January-March quarter of the preceding fiscal, HDFC Life said in a regulatory filing.
The net premium income of the insurer increased to Rs 20,488 crore, up 5 per cent y-o-y in Q4FY24 as compared to Rs 19,427 crore in FYQ423.
The renewal premium of the life insurer has risen to Rs 11,405 crore during the reporting period from Rs 9, 234 crore in Q4FY24.
The insurer earned a total income of Rs 27,893 crore in the quarter against Rs 21,426 crore in the same period a year ago.
“Despite the budget changes impacting high ticket sized business this year, we delivered a healthy growth of 20 per cent for Q4 after adjusting for the one-off business of Rs. 1,000 crore in March 2023. Our stated aspiration of a double-digit growth for the full year was achieved with us clocking an 11per cent growth for FY24, on a normalised basis. We achieved individual APE growth of 1per cent on an unadjusted basis,” said Vibha Padalkar, MD & CEO said.
The embedded value of the insurer rose to Rs 47,468 crore as on March 31, 2024 as against Rs 39,527 crore at the end of last fiscal.
The insurer’s profit after tax (PAT) for FY24 increased 15 per cent at Rs 1,569 crore as against Rs 1,360 crore in the previous fiscal.
“Our new business margins are 26.3 per cent . Value of new business is Rs. 3,501 crore, implying a 2 year CAGR of 14 per cent. Embedded value stands at Rs 47,468 crore, with an operating return on embedded value of 17.5 per cent. We have delivered a strong profit after tax of Rs 1,569 crore during FY 23-24, implying a YoY increase of 15 per cent , fuelled by 18 per cent increase in profit emergence from back book. Solvency continues to be healthy at 187 per cent.
The expense management ratio of the life insurer has fallen to 18.7 per cent in Q4FY24 from 19.4 per cent in Q4 FY 23. Further, persistency for the 13th month and 61st month was 87 per cent and 53 per cent respectively.
The board has recommended a final dividend of Rs 2 per equity share of the face value of Rs 10 each for the financial year 2023-24, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM).
However, the solvency margin declined to 187 per cent at the end of March 2024 from 203 per cent at the end of March 2023.
The insurer further said Deepak Parekh has decided to step down as the chairman and non-executive director of the company with effect from the close of business hours on April 18, 2024.
”Being the founder chairman of our company, Parekh has been instrumental in guiding and nurturing the company over the past 24 years,” it said.
The Board has unanimously approved the appointment of Keki M Mistry as the chairman of the Board. Mistry has been associated with the company since December 2000 and is currently a non-executive director on our board.