Vibha Padalkar, MD & CEO, HDFC Life, said,”Growth during the quarter was underpinned by strong customer acquisition, with the number of policies growing in double digits and ahead of industry,”
Mumbai:Despite having a slight fall in value in new margin (VNB), HDFC Life, the second largest life insurer has reported a 12 per cent rise in first-quarter profit on Wednesday, helped by growth in its premium collections, particularly from policy renewals.
The insurer’s net profit rose to Rs 611 crore($63.47 million) for the three months ended June 30, from Rs 546 crore a year earlier.
HDFC Life’s net premium income rose to Rs 16,548 crore during the June quarter of FY27 from Rs 14,466 crore a year ago, according to a stock exchange filing.
Value of new business(VNB)grew by 9 per cent to Rs879 crore in Q1 FY27, indicating steady profitability on new policies.
Value of new business margins fell to 25 per cent in the reporting period from 25.1 per cent in Q1 FY26
Vibha Padalkar, MD & CEO, HDFC Life, said,”Growth during the quarter was underpinned by strong customer acquisition, with the number of policies growing in double digits and ahead of industry,”
In Q1FY27, the insurer’s proprietary channels led by agency and non-bank alliances channels grew by 17 per cent, faster than the industry, business through our bancassurance channel saw moderate growth this quarter resulting in individual annualized premium equivalent (APE) growth of 7%.
“We saw encouraging improvement in our counter share at partner banks as the quarter progressed, and we expect this to normalise further over the coming months.Our product mix also continued to improve,with non-participating savings crossing 25 per centr of individual APE on a run-rate basis. Retail protection grew 42 per centthis quarter, retail sum assured grew 31 per cent and credit protect grew close to 20 per cent. Together,these underscore the strength of our protection franchise and our continued focus on long-term,sustainable value.,” said Padilkar.
Its assets under management (AUM) expanded by 13 per cent to surpass the Rs 4 lakh crore mark.
Niraj Shah, executive director and CFO, HDFC Life, said,“New Business margin for the quarter was 25.0%; excluding the impact of GST, the margin would have been 25.6 per cent compared to 25.1 per cent in the same period last year. Value of New Business grew 9 per cent to ₹879 crore. We crossed an important milestone during the quarter with Assets Under Management crossing ₹4 lakh crore. Profit after Tax for the quarter grew by 12 per cent year-on-year to ₹611 crore. Excluding GST impact, underlying PAT growth for the quarter stood at 17 per cent.
Shares of HDFC Life settled at Rs 567 apiece on the BSE, up 2.15 per cent from the previous close.