HDFC Life posted a net profit of ₹415 crore for Q1 FY24, up 15 per cent yoy led by strong growth in premium income and value of new business (VNB).
Total premium rose 16 per cent yoy to ₹11,673 crore led by 19 per cent growth in new business premium and 14 per cent in renewal premium.
VNB grew 18 per cent to ₹610 crore aided by 13 per cent growth in total annualised premium equivalent (APE) to ₹2,328 crore. Individual APE was up 12 per cent at ₹1,882 crore, growing 1.5 times faster than private sector players.
VNB margin was at 26.2 per cent as against 25.1 per cent a year ago.
HDFC Life’s market share among private life insurers rose to 16.4 per cent from 15.8 per cent a year ago. Overall life insurance marker share, in terms of individual written premium, was at 10.6 per cent.
Following the merger of parent HDFC with HDFC Bank, effective July 1, HDFC Life is a subsidiary of HDFC Bank.
“HDFC Bank now holds 50.4 per cent in HDFC Life. Our focus is on strengthening our partnership with HDFC Bank, enhancing collaboration, and maximizing customer engagement within our group,” MD and CEO Vibha Padalkar said.
Retail protection trends remain encouraging with YoY growth of 45 per cent in Q1FY24. While the growth is accentuated by a favourable base, we do believe that the pickup in protection is sustainable and the growth is likely to be healthy for the year,” she added.
The insurer sold 2 lakh retail policies and covered 1.6 crore overall lives in Q1 FY24, registering a yoy growth of 8 per cent and 34 per cent, respectively.
The 13th month persistency ratio was flat at 87 per cent, whereas the 61st month ratio improved slightly to 53 per cent from 52 per cent a year ago. Solvency ratio was at 200 per cent compared with 183 per cent in the previous year.