HDFC Life Insurance Co.'s results for the first quarter of fiscal 2025 showed a good performance on the growth front, with a few mixed outcomes otherwise.
HDFC Life Q1 FY25 Earnings Highlights (Consolidated, YoY)
Net profit rises 15% to Rs 479 crore versus Rs 417 crore.
Total income rises 15% to Rs 26,750 crore versus Rs 23,243 crore.
Annualised Premium Equivalent And Individual APE Growth
APE witnessed growth of 23% year-on-year, reaching Rs 2,866 crore, slightly exceeding expectations of Rs 2,800 crore. The performance was driven by a surge in individual APE, which grew by 31% YoY to Rs 2,467 crore.
Value Of New Business And VNB Margin
The VNB grew by 18% YoY, coming in-line with expectations at Rs 718 crore. However, given the stronger-than-expected APE growth, VNB margin contracted more than expected.
VNB margin came in at 25% as compared to 26.2% YoY, and below the expected 25.4%. The dip largely seems to reflect that ULIPs aided the growth in APE. Unit-linked insurance plans are typically a lower margin product and seem to have impacted margin.
Profit After Tax And Embedded Value
PAT for the company rose by 15% YoY to Rs 478 crore. Additionally, the EV grew by 19% YoY, reaching Rs 49,611 crore. The current market capitalisation stands at Rs 1.38 lakh crore.
Persistency Ratio
Persistency ratios show improvement, with the 13-month persistency ratio increasing from 87% to 88% YoY, and the 61-month persistency ratio improving from 53% to 56% YoY. These enhancements reflect the company’s effective customer retention strategies.
Overall, it was a mixed quarter for HDFC Life with better than expected growth on the APE numbers front, while the VNB margin came in lower than expected.
RECOMMENDED FOR YOU
SBI Life, HDFC Life Are Nuvama's Top Picks As Industry Growth Moderates
Sep 10, 2024
Life Insurance Sector Check - Concerns Behind, Strong Outlook Ahead: Motilal Oswal
Sep 06, 2024
Alberta Investment Management And HDFC Life To Invest Rs 667 Crore In India Grid Trust
Aug 27, 2024
LIC Q1 Results Review - Higher Target Multiple Needs Healthier RoEV Level: Yes Securities
Aug 12, 2024
POPULAR