[ad_1]
HDFC Life Insurance Company’s standalone net profit jumped 14.91 per cent to Rs 432.99 crore on the back of a 12.29 per cent rise in net premium income to Rs 16,569.70 crore in the second quarter of the financial year. 25 compared to the second quarter of FY24.
Net investment income soared 43.26 per cent to Rs 11,610.77 crore in Q2 FY25 from Rs 8,104.41 in Q1 FY24.
Profit before tax stood at Rs 437.56 crore in the second quarter of FY25, registering a growth of 32.32 per cent as against Rs 330.68 crore recorded in the corresponding quarter of the previous year.
Click here to join us on WhatsApp
On a half-yearly basis, the company’s standalone net profit increased by 14.96 per cent to Rs 910.64 in the first half of FY25, compared to Rs 792.13 crore recorded during the same period ago one year. Net premium income in the first half of FY25 stood at Rs 29,079.32 crore, up 10.83% over the first half of FY24.
Assets under management (AUM) jumped 23% YoY to Rs 3,24,942 crore in H1FY25, compared to Rs 2,64,870 crore reported in the same period of the year last.
Value of New Business (NBV) grew 17% to Rs 1,656 crore in H1 FY25 compared to Rs 1,411 crore posted in H1 FY24.
The company’s Indian Embedded Value (IEV) in H1FY25 stood at Rs 52,114 crore, registering a growth of 21% YoY.
The life insurer’s new business margin fell to 24.6% in H1 FY25 from 26.2% recorded in H1 FY24. The solvency ratio fell to 181% in H1FY25 from 194% recorded in H1FY24.
The persistence rate for months 13 and 61 improved to 88% and 60%, respectively. This represents a significant increase of 120 basis points and 730 basis points from the previous year, highlighting the company’s effectiveness in engaging with and retaining customers.
Vibha Padalkar, Managing Director and CEO, said, “The private sector and industry as a whole continued their strong momentum in the second quarter, with growth in the first half of FY25 at 24% and 21% respectively. based on individual weighted premiums received. We outperformed the private sector with growth of 28% during this period and 19% on a 2-year CAGR basis. We have seen a 22% increase in the number of insurance policies, which is significantly higher than the private sector growth of 13%. We have experienced long-term growth trends across Tier 1, Tier 2 and Tier 3 geographies.
On the regulatory front, we have successfully relaunched over 40 flagship products contributing to approximately 95% of the business, in line with revised regulations as of October 1, 2024 and we plan to relaunch additional products during the quarter. We thank the regulator for giving us an additional three months to transition to the new product regulations.
Additionally, we are pleased to announce that HDFC Life continues to be recognized for its commitment to sustainability and responsible governance. HDFC Life’s S&P Global ESG score has seen an improvement of over 20% compared to last year and we continue to be highly rated among regional insurers. Our MSCI ESG rating has also been raised to A.
We remain focused on driving sustainable growth and strengthening our leadership in key segments. We will continue to invest in customer-centric innovations to ensure we meet changing needs and remain resilient in a dynamic market. We are confident in our ability to deliver long-term value to our stakeholders, while adapting to changing market conditions with agility and resilience.
HDFC Life Insurance Company is a leading publicly listed long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet diverse customer needs such as protection, retirement, savings, investment, annuity and health. The company has more than 80 products (including individual and group products) and optional riders in its portfolio, meeting a wide range of customer needs.
The stock slipped 3.45 per cent to Rs 714.40 on the BSE.
Powered by Capital Market – Live News
Disclaimer: No Business Standard journalists were involved in the creation of this content.
First publication: October 15, 2024 | 5:09 p.m. STI