HDFC Life Insurance Company Limited has announced its financial results for the first quarter, demonstrating robust growth across key metrics.

Financial Highlights

• Individual Annualized Premium Equivalent (APE) grew by 12.5% year-on-year to ₹2,777.00 crore
• Total premium income increased by 16.1% to ₹14,875.00 crore
• Profit After Tax (PAT) rose by 14% to ₹546.00 crore
• Value of New Business (VNB) expanded by 12.7% to ₹809.00 crore
• New Business Margin improved slightly to 25.1% from 25.0% in the previous year's corresponding quarter

Market Share and Business Mix

HDFC Life continued to outperform the overall industry and private sector, resulting in significant market share gains:

• Overall market share increased by 70 basis points to 12.1%
• Private sector market share grew by 40 basis points to 17.5%

The company maintained a balanced product mix:

Distribution and Customer Acquisition

HDFC Life's multi-channel distribution strategy continued to deliver results:

• Bancassurance channel contributed 60% of individual APE
• Agency channel accounted for 16%
• Non-bank partnerships and direct channels contributed 15% and 9% respectively

The company reported strong customer acquisition, with over 70% of new customers being first-time buyers with HDFC Life. This underscores the company's growing presence across Tier 1, 2, and 3 markets.

Protection Business and Persistency

Retail protection continued to grow faster than the company average:

• Retail protection APE grew by 19% year-on-year
• Retail sum assured registered a robust 16% growth

Persistency ratios remained healthy:

• 13th month persistency stood at 86%
• 61st month persistency improved to 64%

Assets Under Management and Solvency

• Assets Under Management (AUM) grew by 15% year-on-year to ₹3,55,897.00 crore
• Solvency ratio remained strong at 192%, well above the regulatory requirement of 150%

Management Commentary

Vibha Padalkar, Managing Director and CEO of HDFC Life, commented on the results: "Q1 began on a strong note, with healthy growth across topline, value of new business and steady margins. We outperformed both the overall industry and the private sector, resulting in a 70 bps increase in our market share at the overall level to 12.1%, a new milestone for us, and a 40 bps gain within the private sector, taking our share to 17.5%."

She added, "While the external environment remains dynamic, our fundamentals have held strong; anchored in a balanced product mix, a diversified distribution footprint and a consistent focus on innovation, customer centricity and disciplined execution. Our aspiration is to continue to outpace industry growth whilst sustaining our position as a market leader amongst the top 3 in India."

HDFC Life's strong Q1 performance demonstrates the company's resilience and ability to capitalize on growth opportunities in the Indian life insurance market. With its balanced product mix, diversified distribution channels, and focus on customer acquisition, HDFC Life appears well-positioned to maintain its growth trajectory in the coming quarters.

HDFC Life Insurance Company , one of India's leading private life insurers, reported a robust performance for the first quarter, with significant growth in profit and market share.

Strong Financial Performance

The insurer posted a 14% year-on-year increase in standalone net profit to Rs 546.00 crore for Q1, up from Rs 478.00 crore in the same quarter last year. This growth was primarily driven by a 15% increase in backbook profits.

Net premium income rose by 16% year-on-year to Rs 14,466.00 crore, reflecting strong growth across business segments. The company's total premium, including first year, renewal, and single premiums, reached Rs 14,875.00 crore, marking a 16.1% increase from the previous year.

Market Share Gains and Business Growth

HDFC Life continued to outperform the industry, with its overall market share expanding by 70 basis points to 12.1%. In the private sector, the company's market share increased by 40 basis points to 17.5%.

Individual Annualized Premium Equivalent (APE) grew by 12.5% year-on-year, translating into a robust 2-year CAGR of 21%. This growth was supported by a balanced product mix and diversified distribution strategy.

Value of New Business and Margins

The Value of New Business (VNB) grew by 12.7% year-on-year to Rs 809.00 crore, with new business margins improving to 25.1%. This improvement in margins reflects the company's focus on profitable growth and operational efficiency.

Asset Under Management and Embedded Value

HDFC Life's Assets Under Management (AUM) stood at Rs 3,55,897.00 crore as of June 30, representing a 15% year-on-year increase. The company's Indian Embedded Value (IEV) rose to Rs 58,355.00 crore, with an operating Return on Embedded Value (RoEV) of 16.3% on a rolling 12-month basis.

Protection Business and Customer Acquisition

Retail protection continued to grow faster than the company average, delivering a robust growth of 19% year-on-year and a strong 2-year CAGR of 23%. Retail sum assured grew in double digits and registered a 30% CAGR over two years.

Over 70% of new customers acquired in Q1 were first-time buyers with HDFC Life, underscoring the company's customer acquisition strength and deepening presence across Tier 1, 2, and 3 markets.

Management Commentary

Vibha Padalkar, Managing Director and CEO of HDFC Life, commented on the results: "Q1 began on a strong note, with healthy growth across topline, value of new business and steady margins. We outperformed both the overall industry and the private sector, resulting in a 70 bps increase in our market share at the overall level to 12.1%, a new milestone for us, and a 40 bps gain within the private sector, taking our share to 17.5%."

She further added, "While the external environment remains dynamic, our fundamentals have held strong; anchored in a balanced product mix, a diversified distribution footprint and a consistent focus on innovation, customer centricity and disciplined execution. Our aspiration is to continue to outpace industry growth whilst sustaining our position as a market leader amongst the top 3 in India."

Outlook

With its strong performance in Q1, HDFC Life has set a positive tone for the fiscal year. The company's focus on balanced growth, product innovation, and customer-centric approach positions it well to capitalize on the growing life insurance market in India. As the company continues to expand its market share and improve operational efficiencies, it remains well-positioned to deliver sustainable growth in the coming quarters.