HDFC Life delivered a robust first quarter for FY 2024-25, boasting a 15% year-on-year increase in net profit to ₹479 crore. This positive performance was fueled by growth across various metrics, solidifying HDFC Life’s position as a key player in the Indian insurance sector.
Breakneck Growth in Sales and Market Share
The company’s sales momentum remained strong, with annualised premium equivalent (APE) surging by 23% to ₹2,866 crore. This growth reflects a significant rise in new business premium, up 9% to ₹6,400 crore. HDFC Life is also successfully capturing a larger market share, evident in the increase of its private market share from 16.4% to 17.1% year-on-year. The company’s overall market share in individual weighted received premiums (WRP) also climbed to 11.4%.
Strength Beyond Topline Figures
HDFC Life’s performance extends beyond topline growth. The company witnessed a noteworthy 46% increase in retail sum assured, driven by a strategic focus on higher product value and strong rider sales. This translates to a more comprehensive financial safeguard for policyholders. HDFC Life’s financial strength is further accentuated by its assets under management (AUM) surpassing a significant milestone of ₹3 lakh crore, reflecting a 22% increase. Demonstrating its commitment to policyholders, HDFC Life declared its highest-ever bonus of ₹3,722 crore.
Strategic Capital Raise and Diversified Product Mix
To fuel future growth initiatives, HDFC Life has received in-principle approval to raise ₹2,000 crore through Non-Convertible Debentures (NCDs) in the next year. This strategic capital raise will provide the company with the necessary resources to capitalize on emerging opportunities.
HDFC Life maintains a well-diversified product mix for individual APE, catering to various customer needs. ULIPs (38%) remain a significant contributor, but the company witnessed a moderation in this segment during the quarter. This balanced approach is further reflected in the strong performance of non-par savings products, which grew by an impressive 41% year-on-year. HDFC Life also offers participating products, term plans, and annuities, providing a comprehensive suite of insurance solutions.
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Geographic Reach and Positive Outlook
The positive performance wasn’t limited to specific regions. HDFC Life reported strong topline growth across all tiers (1, 2, and 3) geographically. This demonstrates the company’s ability to cater to a broad customer base across India’s diverse economic landscape.
Vibha Padalkar, MD & CEO of HDFC Life, highlighted the robust growth across all metrics and the anticipated positive impact of IRDAI’s reforms in the insurance sector. With a strong Q1 performance setting the pace, HDFC Life is well-positioned for a successful year ahead.
