HDFC Life Insurance Q1FY25 net profit up by 15% y-o-y

16 Jul 2024 , 11:06 AM

HDFC Life Insurance’s Q1 FY25 net profit increased 15% year on year to ₹479 Crore, boosted by substantial growth in both first-year and renewal premiums. The net profit matched Street expectations.

The private sector life insurer’s net premium income for the April-June quarter was ₹12,548 Crore, up 9% from ₹11,508 Crore in the same period last year.

The company’s annualised premium equivalent (APE), which measures new business written by a life insurance company, increased by 23%, falling slightly short of market estimates of 24% growth. The APE was ₹2,866 Crore during the quarter.

HDFC Life’s new business (VNB) margin, which represents the present value of future earnings connected with new business written during the quarter, decreased by 120 basis points. The markets predicted the new business margin to decline by 130 basis points. The new business margin for the quarter was 25%. The value of new business (VNB) increased 18% year on year to ₹718 in April-June.

The company intends to raise ₹2,000 Crore via non-convertible debentures in one or more tranches. This will be done in a private placement over a one-year period, subject to the requisite approvals to maintain solvency requirements.

Meanwhile, the company’s new business premiums increased by 9% year on year to ₹6,400 Crore, up from ₹5,869 Crore the previous year. Its annualised premium equivalent (APE) increased by 23% year on year to ₹2,866 Crore during this period.

At around 10.28 AM, HDFC Life Insurance was trading 0.24% lower at ₹636.50, against the previous close of ₹638.05 on NSE. The counter touched an intraday high and low of ₹648, and ₹633.35, respectively.

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