HDFC Life Q1 PAT up 15% on growth in premium income, new business

HDFC Life reported net profit of Rs 415 crore for the first quarter of FY24, up by 15% year-on-year driven by strong growth in premium income and value new business (VNB).

Total insurance premium increased by 16 per cent year-on-year to Rs. 11,673 crore driven by 19 per cent growth in new business premiums and 14 per cent in renewal premiums.

VNB grew by 18 per cent to ₹610 crore aided by 13 per cent growth in Gross Annual Premium Equivalent (APE) to ₹2,328 crore. Individual APE is up 12 per cent at Rs 1,882 crore, growing 1.5 times faster than private players.

VNB margin was at 26.2% versus 25.1% a year ago.

HDFC Life’s market share among private life insurers rose to 16.4 percent from 15.8 percent a year earlier. The share of total life insurance, in terms of individual premiums written, was 10.6 percent.

After the merger of the main HDFC with HDFC Bank, as of July 1, HDFC Life became a subsidiary of HDFC Bank.

HDFC Bank now owns 50.4 per cent of HDFC Life. Our focus is on strengthening our partnership with HDFC Bank, enhancing synergy, and maximizing customer engagement within our group,” said Managing Director and CEO Vibha Padalkar.

Retail protection trends remain encouraging with 45 percent annual growth in Q1 FY24. While the growth is underpinned by a favorable base, we believe the recovery in protection is sustainable and growth is likely to be healthy for the year.”

The insurance company sold 2 lakh crore retail policies and covered Rs 1.6 crore total life in the first quarter of FY24, recording year-on-year growth of 8 per cent and 34 per cent respectively.

13th^y The month-to-month percentage was steady at 87 percent, while 61^street The month ratio improved slightly to 53 percent from 52 percent a year ago. The solvency ratio was 200 percent, compared to 183 percent in the previous year.