Bengaluru, 15th October, 2024 –The Board of Directors of HDFC Life approved and adopted the reviewed standalone and consolidated financial results for half year ended September 30, 2024. The Company delivered healthy performance across all metrics, maintaining positive momentum.
Performance Highlights:
- Topline Growth: Delivered strong new business premium (individual APE) growth of 31%, supported by a 22% increase in number of policies sold and a balanced product mix
- Market Share: Private sector market share (individual WRP) expanded by 60 bps to 16.3%. Overall market share touched a new peak of 11%
- Value of New Business (VNB) grew by 17.4% to reflecting focus on writing profitable business
- Assets under Management (AUM): AUM stood at as on 30th September 2024, an increase of 23% in H1 FY25
- Persistency: 13th and 61st month persistency ratios improved to 88% and 60% respectively, marking a material increase of 120 basis points and 730 basis points respectively versus the previous year, underscoring the company’s ability to engage with and retain customers
- Embedded Value (EV) crossed the milestone during the quarter, with 16.0% operating return on EV, showcasing sustained long-term value creation for both policyholders and shareholders
- Profit After Tax (PAT) of was achieved in H1 FY25, clocking a steady growth of 15% year-on-year
- Solvency Ratio stood at 181%, comfortably above the regulatory threshold of 150%. Post the subordinated debt raise of Rs 1,000 crore on 9th October 2024, solvency stood at 192%.
- HDFC Pension Fund Management is HDFC Life’s wholly-owned subsidiary and India’s largest private pension fund manager. It achieved a significant milestone in H1 FY25, by crossingin Assets under Management
- Employee Focus: We were recognised for our inclusivity and employee-friendly policies, being awarded the Best Companies for Women in India 2024 in the BFSI sector and Exemplar of Inclusion (Most Inclusive Companies India 2024) by Avtar & Seramount
CEO’s Statement:
Vibha Padalkar, Managing Director and CEO of HDFC Life, commented: “The private sector and overall industry continued its strong momentum in Q2, growing in H1FY25 by 24% and 21% respectively on an individual weighted received premium basis. We have outperformed the private sector by growing at 28% during this period and 19% on a 2 year CAGR basis. We registered an increase of 22% in the number of policies, which was significantly ahead of the private sector growth of 13%. We experienced secular growth trends across Tier 1, Tier 2 and Tier 3 geographies.
On the regulatory front, we have successfully relaunched more than 40 top products contributing to about 95% of the business, in alignment with revised regulations as on October 1, 2024 and we plan to relaunch other products during the course of the quarter. We are thankful to the regulator in allowing us an additional time of three months for transitioning to the new product regulations.
Furthermore, we are happy to inform that HDFC Life continues to be recognised for its commitment to sustainability and responsible governance. HDFC Life’s S&P Global ESG score saw an improvement of over 20% versus last year and we continue to be rated well amongst regional insurers. Our MSCI ESG Rating has also been upgraded to ‘A’.
We remain focused on driving sustainable growth and strengthening our leadership across key segments. We will continue to invest in customer-centric innovations to ensure we meet evolving needs and remain resilient in a dynamic market. We are confident in our ability to deliver long-term value for our stakeholders, whilst adapting to the evolving market landscape with agility and resilience.”
