HDFC Life Q2 net profit rises 15% to Rs 377 crore

Mumbai: Second-largest private sector life insurer HDFC Life Friday reported a 15 per cent year-on-year growth in net income to Rs 377 crore for the September 2023 quarter, as it sold more policies during the period.

While its total premium grew 12 per cent to Rs 26,613 crore, new business premium rose 11 per cent to Rs 12,970 crore against a 21 per cent de-growth for the industry. Of the total premium, individual premium rose 11 per cent to Rs 4,478 crore.

The HDFC Bank group company said its overall annualised premium equivalent (APE) rose 7 per cent to Rs 3,045 crore, while the total topline grew 10 per cent, helping it retain its market share flat at 10.3 per cent.

However, with LIC sharply losing its market share by as much as 10 percentage points to 58 per cent in the quarter, it helped the private life insurer become the third largest in terms of market share after LIC and SBI Life.

HDFC Life MD and CEO Vibha Padalkar, describing the numbers as expected in a seasonally weak quarter, told PTI that the company's margins remained flat in the quarter at 26.3 per cent, while the value of new business rose 4 per cent to Rs 801 crore, while the embedded value stood at Rs 42,908 crore.

During the quarter, the company added almost 1.7 crore new lives being covered through life and annuity policies collectively rising 17 per cent, while protection premiums rose by 28 per cent, driving the embedded value growth by 19 per cent, she added.

Its sum assured rose 65 per cent to Rs 6.5 lakh crore, making it the top private player on this front. This was led by a 46 per cent rise in retail protection annual premium, while assets under management rose 18 per cent to Rs 2.65 lakh crore.

Its shares closed flat at Rs 625 apiece, with a marginal positive bias, while the Sensex closed marginally lower by 0.20 per cent.