HDFC Life Q3 FY25 Results: Net Profit Rises 15% YoY, Premium Income Grows 10%

HDFC Life Insurance Company reported a 15% year-on-year increase in its consolidated net profit for the quarter ending December 2024, reaching ₹421.31 crore, compared to ₹367.54 crore in the same period the previous year. The net premium income also rose by 10%, totalling ₹16,832 crore, up from ₹15,273 crore in the corresponding quarter last year.

The rise in profit after tax (PAT) was driven by a record 24% growth in the company’s individual annual premium equivalent (APE). However, on a sequential basis, the PAT declined by 3.2% from ₹435.18 crore in the July-September quarter. In contrast, net premium income saw a 13% quarter-on-quarter growth, increasing from ₹16,614 crore in Q2FY25.

CEO’s Remarks Highlight Growth

Vibha Padalkar, the Managing Director and CEO of HDFC Life emphasised the company’s robust performance in the 9 months leading up to December 2024. She noted that the insurer achieved a 22% growth in individual Weighted Received Premium (WRP), significantly outpacing the private insurance sector’s overall growth rate of 14%.

Assets Under Management and Persistency Improvements

HDFC Life’s Assets Under Management (AUM) grew by 18% year-on-year to ₹3.3 lakh crore, reflecting the company’s effective financial management. The persistency ratios also showed considerable improvement:

• The 13th-month persistency ratio rose to 87%, up from earlier levels.
• The 61st-month persistency ratio increased to 61%, indicating sustained customer retention over longer terms.

Additionally, the company maintained a strong solvency ratio of 188%, comfortably exceeding the regulatory requirement of 150%, reinforcing its financial stability.

Expanding Distribution Network

HDFC Life’s extensive distribution network includes over 240,000 agents, securing its position among the top 3 private life insurers in terms of agency strength. The company has also established approximately 90 bancassurance partnerships with banks and NBFCs. Furthermore, HDFC Life leverages collaborations with digital ecosystems to broaden its market reach and enhance customer accessibility.

Diversified Product Portfolio

The company highlighted its well-diversified product offerings, which cater to a broad range of customer needs. The composition of its individual APE is as follows:

• Unit-linked products: 37%.
• Non-par savings products: 35%.
• Protection products: 6%.

HDFC Life share price opened at ₹630.10, reached a high of ₹663.60 and was trading at ₹655.55 as of 10:07 AM IST, reflecting a 10.32% gain.

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