HDFC Life Profit Rises 14% on Premium Growth and AUM Gains

HDFC Life Insurance reported a 14.4% year-on-year increase in net profit to ₹5.46 billion for the April–June quarter, supported by steady growth in premium collections and assets under management. The rise was also aided by higher backbook profits.

Net premium income grew 15.6% on year to ₹144.66 billion, driven by a 12.5% increase in individual annualised premium equivalent. Still, premium income fell 39% sequentially, as both first-year and renewal premiums dropped 42% each.

The quarter-on-quarter decline in premium collections was partially offset by lower commission payouts. Net commission expenses fell over 32% from the previous quarter to ₹17.49 billion, though they were 19% higher than a year ago.

Employee expenses rose 26% on year to ₹8.75 billion, while other operating costs increased nearly 11% to ₹6.35 billion. Sequentially, overall operating expenses were down 26%.

Assets under management reached ₹3.56 trillion as of 30 June, a year-on-year increase of nearly 15%. The solvency ratio stood at 192%, comfortably above the regulatory minimum of 150%.

The value of new business rose to ₹8.1 billion, from ₹7.2 billion a year earlier, while the new business margin inched up to 25.1% from 25%. The 13th-month persistency ratio held steady at 82.7%.

Unit-linked insurance plans continued to dominate the product mix, accounting for 38% of total business. “Contrary to initial expectations, demand for ULIPs remained strong, supported by sustained strength in equity markets,” said managing director and chief executive Vibha Padalkar.

She added that HDFC Life expects a gradual shift towards traditional products and remains focused on outperforming industry growth while retaining its position among the country’s top three insurers.