HDFC Life Insurance to finalise terms of ₹2,000 Crore issue

25 Sep 2024 , 12:16 PM

HDFC Life Insurance Company Ltd announced on Tuesday (September 24) that its Capital Raising Committee (CRC) will meet on September 27, 2024, to finalise the commercial conditions for the issuance of subordinated debt instruments.

The company has received in-principle board clearance to finance up to ₹2,000 Crore through non-convertible debentures (NCDs) via private placement.

The funds will be raised in one or more tranches, depending on regulatory approvals. The issuance will include unsecured, rated, listed, redeemable, fully paid-up, non-cumulative, and subordinated NCDs. The Capital Raising Committee will decide on the exact terms and conditions for the debt issuance at its next meeting.

HDFC Life’s net profit increased by 15% YoY to ₹479 Crore, up from ₹417 Crore in the same period last year. The company’s annual premium equivalent (APE) increased by 23%.

The new business premium was 9% higher at ₹6,400 Crore. HDFC Life’s private market share increased from 16.4% in the first quarter of FY24 to 17.1% in the first quarter of FY25, while its overall market share in individual weighted received premiums (WRP) increased to 11.4%.

The company reported a 46% increase in retail sum assured. HDFC Life’s AUM surpassed ₹3 lakh Crore, representing a 22% growth.

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