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

Executive summary

• Individual APE grew 31% YoY in H1 FY25, with individual weighted received premium up 28%, outpacing private sector and industry growth.

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

• Market share among private players increased to 16.3%, with overall market share at a record 11%.

• Profit after tax rose 15% YoY to INR 911 crore; embedded value at INR 52,114 crore with 16% operating return.

• Assets under management grew 23% YoY to INR 3.25 lakh crore.

Financial highlights

• Total premium for H1 FY25 was INR 29,738 crore, up 12% YoY; renewal premium up 12% to INR 15,242 crore.

• Retail sum assured grew 31% YoY; individual APE reached INR 5,864 crore, up 31% YoY.

• Persistency ratios improved to 88% (13th month) and 60% (61st month).

• Product mix (individual APE): ULIP 36%, non-par 38%, par 15%, term 6%, annuities 5%.

• New business premium (individual + group) increased 12% to INR 14,497 crore.

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 H2 margins likely slightly higher than H1 depending on product mix and regulatory impacts.

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

• Continued expansion in tier 2/3 markets, with 58% APE contribution and 80% of new agent additions from these regions.

• Management remains focused on sustainable growth and adapting to regulatory changes.