HDFC Life Shares Zoomed Over 2%: Released 1H FY25 Results

On October 16, 2024, HDFC Life announced its standalone and consolidated financial results for the half-year ending September 30, 2024, demonstrating a strong performance across all key metrics. The company achieved a remarkable 31% growth in new business premiums (individual APE), aided by a 22% increase in the number of policies sold and a well-balanced product mix. Its private sector market share (individual WRP) rose by 60 basis points to 16.3%, with the overall market share reaching a new high of 11%. 

The Value of New Business (VNB) increased by 17.4% to ₹1,656 crore, indicating a commitment to profitable business practices. Assets Under Management (AUM) totalled ₹3.25 lakh crore as of September 30, 2024, reflecting a 23% increase in H1 FY25. Additionally, the persistency ratios for the 13th and 61st months improved to 88% and 60%, respectively, highlighting the company’s effectiveness in customer retention. The Embedded Value (EV) surpassed ₹50,000 crore, achieving a 16.0% operating return, which underscores long-term value creation for both policyholders and shareholders. 

HDFC Life also reported a Profit After Tax (PAT) of ₹911 crore for H1 FY25, showing a 15% year-on-year growth. The solvency ratio stood at 181%, well above the regulatory requirement of 150%, and improved to 192% following a ₹1,000 crore subordinated debt raise on October 9, 2024. Furthermore, HDFC Pension Fund Management, a wholly-owned subsidiary of HDFC Life and India’s largest private pension fund manager, reached a significant milestone by crossing ₹1 lakh crore in Assets Under Management during H1 FY25.

Vibha Padalkar, Managing Director and CEO of HDFC Life commented: “The private sector and overall industry continued its strong momentum in Q2, growing in H1FY25 by 24% and 21% respectively on an individual weighted received premium basis. We have outperformed the private sector by growing at 28% during this period and 19% on a 2-year CAGR basis. We registered an increase of 22% in the number of policies, which was significantly ahead of the private sector growth of 13%. We experienced secular growth trends across Tier 1, Tier 2 and Tier 3 geographies.” 

He added, “On the regulatory front, we have successfully relaunched more than 40 top products contributing to about 95% of the business, in alignment with revised regulations as of October 1, 2024, and we plan to relaunch other products during the course of the quarter. We are thankful to the regulator for allowing us an additional time of three months to transition to the new product regulations. Furthermore, we are happy to inform you that HDFC Life continues to be recognised for its commitment to sustainability and responsible governance. HDFC Life’s S&P Global ESG score saw an improvement of over 20% versus last year and we continue to be rated well amongst regional insurers.” 

He further stated, “Our MSCI ESG Rating has also been upgraded to ‘A’. We remain focused on driving sustainable growth and strengthening our leadership across key segments. We will continue to invest in customer-centric innovations to ensure we meet evolving needs and remain resilient in a dynamic market. We are confident in our ability to deliver long-term value for our stakeholders, whilst adapting to the evolving market landscape with agility and resilience.”

On October 16, 2024, HDFC Life shares opened at ₹720.05 and touched the day high of ₹729.50 at 10:30 AM

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.