HDFC Life Q3 results: Net profit up 15% YoY, premium revenue up 10%

HDFC Life Insurance Company announced a 15% increase in consolidated net profit for the December quarter, which reached ₹421.31 crore compared to ₹367.54 crore in the same period last year. The company’s net premium income for the third quarter of FY25 increased by 10% overall. ₹16,832 crore, upwards from ₹15,273 crore in the corresponding quarter of the previous year.

The increase in profit after tax (PAT) was driven by a record 24 per cent increase in HDFC Life’s individual annual premium equivalent (APE).

However, on a sequential basis, PAT declined by 3.2%. ₹435.18 crore reported in Q2 FY24. On the other hand, net premium income saw a 13 percent quarter-over-quarter increase ₹16,614 crore during July-September.

Vibha Padalkar, Managing Director and CEO HDFC Life mentioned that the insurer recorded a 22 percent increase in individual WRP (weighted premium received) in the nine months ending December, outperforming the overall industry growth of 14 percent. “During this period, we have witnessed an increase in both ticket sizes and volume. Policy volumes increased by 15 percent, outpacing private sector growth of 9 percent,” she said.

AUM and other key financial data

The insurance giant’s assets under management (AUM) grew 18 percent year-on-year to flat ₹3.3 million crore. Persistence rates saw significant improvement: the 13-month persistence rate increased to 87% and the 61-month persistence rate increased to 61%. The capital adequacy ratio remained high at 188 percent, well above the regulatory requirement of 150 percent.

HDFC Life said it has a network of more than 240,000 agents in terms of distribution, placing it in the top three private life insurers in terms of agency strength. In addition, the insurer boasts approximately 90 bancassurance partnerships. The company emphasized that partnerships with banks, NBFCs and digital ecosystems expand its market reach.

The company also highlighted its diversified product portfolio, with unit-linked products accounting for 37%, non-nominal savings accounting for 35%, and protective products accounting for 6% of individual APE.