“As we enter our 25th year of existence, our aspiration remains, against a backdrop of a stable regulatory regime, to consistently outpace sector topline growth, deliver VNB growth in line with APE growth and double key metrics every 4 to 4.5 years.” Vibha Padalkar, MD and CEO, HDFC Life
Mumbai: HDFC Life Insurance, the third largest life insurer, has recorded a 15 per cent yer-on-year(Y-o-Y) jump in its net profit to Rs 475 crore in Q4FY25.
The life insurer, which announced its results on Thursday, has increased its premium by 16 per cent Y-o-Y to Rs 23,842 crore,driven by a 19 per cent jump in single premiums. during the reporting period.
Growth in its market- or unit-linked insurance plans (ULIPs) slowed due to volatility in India’s equity markets.
ULIPs accounted for 39 per cent of the company’s overall product mix, up from 37 per cent a quarter ago and 35 per cent a year earlier.
A rise in demand for group insurance plans in the January-to-March quarter boosted premium income for insurers, analysts said.
Group insurance policies cover a group of people under one contract and are generally utilised by firms for their employees.
HDFC Life Insurance’s value of new business (VNB), or expected profit from new policies, rose 11.5 per cent to Rs 1376 crores .
Annualised premium equivalent (APE) sales, which is the annualised total value of all single- and recurring-premium policies, rose 9.7 per cent to Rs 5186 crore during the three-month period,
The company’s board has recommended a final dividend of Rs 2.1 per share, aggregating to a payout of about Rs 452 crore.
Vibha Padalkar, MD and CEO, HDFC Life, commented: “We are happy to report an 18 per cent growth in Individual APE for FY25, in line with our stated growth aspirations for the year. Our overall industry market share expanded by 70 bps to 11.10 per cent and by 30 bps to 15.7 per cent within the private sector.
“Retail protection continued to show strong momentum with APE growth of 25 per cent. All channels registered double-digit growth. We continue to enhance customer experience through intuitive digital platforms, with over 90 per cent of service requests now handled via self-service. As we enter our 25th year of existence, our aspiration remains, against a backdrop of a stable regulatory regime, to consistently outpace sector topline growth, deliver VNB growth in line with APE growth and double key metrics every 4 to 4.5 years.”
The company’s total premium rose 13 per cent y-o-y to Rs 71,045 crore, out of which renewal premium grew 13 per cent y-o-y to Rs 37,680 crore during FY 2025.
The life insurer’s value of new business(VNB) increased 13 per cen y-o-y to Rs 3,961 crore in FY 25.
However new business margin(NBM) has fallen to 25.60 per cent in FY 25 from 26.30 per cent in FY 24.
HDFC Life’s Assets Under Management (AUM) stood at Rs 3,36,282 crore as of March 31, 2025, reflecting a 15 per cent y-o-y increase.
The solvency ratio of the life insurer stood at 194 per cent , comfortably above the regulatory threshold of 150 per cent .
Embedded Value (EV) of the life insurer grew by 17 per cent and stood at Rs 55,423 crore, with 16.7 per cent operating return on EV, showcasing sustained long-term value creation for shareholders.
For the fy 2024-25, the life insurer’s net profit rose 5 per cent y-o-y to Rs 1,802 crore
The company’s persistency for the 13th and 61st months stood at a strong 87 per cent and 63 per cent respectively.
The company has currently has 2.4 lakh agents and over 650 physical branches
Peer ICICI Prudential Life Insurance’s (ICIR.NS), opens new tab standalone profit more than doubled in the fourth quarter while SBI Life Insurance is scheduled to post its earnings next week.