HDFC Life Insurance Company (HDFCLIFE) Q2 24/25 earnings summary

Executive summary

• Achieved 31% year-over-year growth in individual APE and 28% growth in individual weighted received premium in H1 FY25, outpacing private sector and industry growth rates of 24% and 21%.

• Value of new business (VNB) grew 17.4% YoY to INR 1,656 crores, with new business margins at 24.6%.

• Profit after tax increased 15% YoY to INR 911 crores (Rs 9.1 bn).

• Market share among private players rose to 16.3%, with overall market share reaching a record 11% in H1 FY25.

• Embedded value as of September 30, 2024, stood at INR 52,114 crores, with an operating return on embedded value of 16%.

Financial highlights

• Individual APE reached Rs 58.6 bn, up 31% YoY; total premium for H1 FY25 was Rs 297.4 bn, up 12% YoY.

• Number of policies sold increased 22% YoY, with a 7% rise in ticket size.

• Retail sum assured grew 31% YoY and 45% on a two-year CAGR basis.

• Persistency improved to 88% (13th month) and 60% (61st month), up 120 bps and 730 bps YoY.

• Assets under management grew 23% YoY to Rs 3,249.4 bn.

Outlook and guidance

• Full-year growth outlook revised to 18%-20%, with VNB growth expected in the 15%-17% range.

• Margins expected to remain range-bound, with flexibility due to regulatory and product mix changes.

• Focus on profitable growth, diversified distribution, and leveraging technology for future readiness.