HDFC Life reports strong Q3 performance with 16% rise in net profit

HDFC Life Q3 results: Private sector life insurer HDFC Life Insurance has posted robust financial results for the October-December quarter of FY 2023-24. The company reported a net profit of Rs 365 crore, marking a significant 16 per cent increase from the year-ago period's Rs 315 crore.

Financial highlights

• Net Premium Income: The net premium income for Q3 reached Rs 15,235 crore, reflecting a substantial 6 per cent YoY growth from Rs 14,379 crore.
• Solvency Ratio: The solvency ratio experienced a slight dip from 209 per cent to 190 per cent on a YoY basis.
• APE Growth: The annualized premium equivalent (APE) for the nine months of FY24, a measure of new business, grew by 5 per cent to Rs 8,564 crore.
• VNB Margin: The Value of New Business (VNB) margin, representing future profits associated with new business, witnessed a 5 per cent growth, standing at Rs 2,267 crore.

Strategic developments

HDFC Life recently announced new bancassurance partnerships with Karnataka Bank, Karur Vysya Bank, and NKGSB Co-operative Bank, enhancing its distribution network.

Commenting on the results, Vibha Padalkar, MD & CEO, stated, “We continued to be ranked amongst the top 3 life insurers, and the number of policies clocked a healthy growth of 9 per cent, outpacing private and overall industry.”

The shares of HDFC Life ended 0.91 per cent lower at Rs 638.15 apiece on the NSE on Friday, January 12, 2023.