HDFC Life Q3 results: Net profit jumps 15% YoY, premium income grows 10% | Stock Market News

HDFC Life Insurance Company announced a 15 per cent increase in its consolidated net profit for the December quarter, reaching ₹421.31 crore compared to ₹367.54 crore in the same period last year. The company’s net premium income for Q3FY25 rose by 10 per cent, totaling ₹16,832 crore, up from ₹15,273 crore in the corresponding quarter of the previous year.

The growth in profit after tax (PAT) was driven by a record 24 per cent rise in HDFC Life’s individual annual premium equivalent (APE).

However, on a sequential basis, PAT decreased by 3.2 per cent from ₹435.18 crore reported in Q2FY24. On the other hand, the net premium income saw a 13 per cent quarter-on-quarter increase from ₹16,614 crore in the July-September period.

Vibha Padalkar, the Managing Director and CEO of HDFC Life, mentioned that the insurer experienced a 22 percent growth in individual WRP (weighted received premium) for the nine months ending in December, surpassing the industry’s overall growth of 14 percent. “We have witnessed both ticket size and volume expansion during this period. The number of policies has grown by 15 percent, outperforming the private sector’s growth of 9 percent,” she said.

AUM and other key financials

The insurance giant’s assets under management (AUM) grew by 18 per cent year-over-year, reaching ₹3.3 lakh crore. The persistency ratios saw considerable improvement, with the 13th-month persistency ratio rising to 87 per cent, and the 61st-month ratio increasing to 61 per cent. The solvency ratio stayed strong at 188 per cent, comfortably exceeding the regulatory requirement of 150 per cent.

HDFC Life stated that in terms of distribution, it has a network of over 240,000 agents, securing its place among the top three private life insurers based on agency strength. Furthermore, the insurer boasts approximately 90 bancassurance partnerships. The company emphasized that its collaborations with banks, NBFCs, and digital ecosystems enhance its market reach.

The company also highlighted its diversified product portfolio, with unit-linked products accounting for 37 per cent, non-par savings for 35 per cent, and protection products making up 6 per cent of individual APE.