HDFC Life Insurance Company (HDFCLIFE) Q3 24/25 earnings summary

Executive summary

• Individual WRP grew 22% for nine months FY25, outpacing private industry (19%) and sector (14%) growth; total premium rose 12% YoY to Rs 470.1 bn, with 24% YoY growth in individual APE and 15% YoY increase in PAT to Rs 13.3 bn.

• Market share expanded by 70 bps to 10.8% overall and 15.3% in the private sector; assets under management rose 18% YoY to Rs 3,286.8 bn; Indian Embedded Value (IEV) up 18% YoY to Rs 532.5 bn.

• Over 70% of new customers are first-time buyers, with 15% growth in policies sold and 8% increase in average ticket size; retail sum assured grew 22% YoY; lives insured crossed 36 million.

• Maintained high 13th month persistency at 87% and claim settlement ratio at 99.7%.

• Secular growth across Tier 1, 2, and 3 cities; strong agency and bancassurance performance; 58% APE contribution and 71% of new agent additions from tier 2/3 markets.

Financial highlights

• Value of new business (VNB) for nine months at INR 2,586 crores, up 14% YoY; new business premium grew 11% YoY to Rs 223.9 bn; renewal premium up 12% YoY to Rs 246.2 bn.

• New business margin at 25.1%, with compression due to product mix changes and surrender value regulation; slightly lower than 26.5% in 9M FY24.

• Embedded value rose 18% to INR 53,246 crores; operating return on embedded value at 16%.

• Profit after tax increased 15% YoY to INR 1,326 crores; basic EPS for the quarter was ₹1.96, up from ₹1.71 YoY.

• Renewal collections up 12% YoY; solvency ratio at 188%.

Outlook and guidance

• Management expects seasonality to boost growth in Q4, maintaining annual targets for APE and VNB growth; results are subject to seasonality and may not be indicative of full-year performance.

• Margins expected to remain stable or improve slightly, with focus on balanced product mix and VNB growth; emphasis on long-term insurance solutions and product innovation.

• Continued investment in distribution technology, digital transformation, and customer-centric product innovation; focus on strengthening IT and information security following a data-theft incident.