In the first quarter of the fiscal year 2025, HDFC Life Insurance reported a net profit of Rs 479 crore, marking a 15% increase compared to the same period last year. This growth was driven by a substantial rise in both first-year and renewal premiums. The net profit figures aligned with market expectations, as a Bloomberg survey of three brokerages had predicted a net profit of Rs 478 crore for HDFC Life.
For the April to June quarter, the company’s net premium income reached Rs 12,548 crore, which is a 9% increase from Rs 11,508 crore in the previous year’s corresponding quarter.
The annualized premium equivalent (APE), which measures new business for life insurance companies, saw a 23% growth, slightly below the market’s 24% growth expectation, totaling Rs 2,866 crore for the quarter.
However, the new business (VNB) margin, which represents the present value of future profits from new business written during the quarter, decreased by 120 basis points. Despite market predictions of a 130 basis points drop, the VNB margin stood at 25% for the quarter. The value of new business (VNB) itself saw an 18% year-on-year increase, reaching Rs 718 crore for the April-June period.
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Source: Moneycontrol
