ETMarkets.com(You can now subscribe to our(You can now subscribe to our ETMarkets WhatsApp channelLeading insurer HDFC Life on Monday reported 15% growth in its standalone net profit at Rs 477 crore for the first quarter, compared with Rs 415 crore in the last year period.Net premium income during the April-June 2024 period increased 9% year-on-year (YoY) to Rs 12,510 crore.
It was Rs 11,480 crore in the corresponding period of previous year.The individual annual premium equivalent (APE) during the first quarter recorded a growth of 31% YoY to Rs 2,467 crore, while the total APE rose 23% YoY to Rs 2,866 crore.The new business premium during the reporting period jumped 9% YoY to Rs 6,400 crore.
The company’s growth outpaced both the private sector and overall industry, both on a YoY and a two-year CAGR basis.
Meanwhile, the 13th month persistency ratio improved to 88% in the reporting quarter as against 87% a year ago.
"We have started the year on a strong note, achieving 31% YoY growth in individual APE, which implies a two-year CAGR of 21%.
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Leading insurer HDFC Life on Monday reported 15% growth in its standalone net profit at Rs 477 crore for the first quarter, compared with Rs 415 crore in the last year period.Net premium income during the April-June 2024 period increased 9% year-on-year (YoY) to Rs 12,510 crore. It was Rs 11,480 crore in the corresponding period of previous year.The individual annual premium equivalent (APE) during the first quarter recorded a growth of 31% YoY to Rs 2,467 crore, while the total APE rose 23% YoY to Rs 2,866 crore.The new business premium during the reporting period jumped 9% YoY to Rs 6,400 crore. The value of new business (VnB), on the other hand, rose 18% YoY to Rs 718 crore.HDFC Life registered a strong increase in the number of policies and witnessed an expansion in ticket size as well. The company’s growth outpaced both the private sector and overall industry, both on a YoY and a two-year CAGR basis."Growth resurgence was experienced in tier 1 markets whilst maintaining strong growth in tier 2 and 3 geographies, which continue to account for a significant portion of the business," the company said.The retail sum assured achieved 46% growth, bolstered by the higher sum assured multiples for savings products and strong rider attachment and aided by 28% growth in retail protection.Coming to the key ratios, the solvency ratio for the first quarter stood at 186%, compared with 200% in the same quarter of last year. Meanwhile, the 13th month persistency ratio improved to 88% in the reporting quarter as against 87% a year ago."We have started the year on a strong note, achieving 31% YoY growth in individual APE, which implies a two-year CAGR of 21%. This robust growth is driven by a comprehensive performance across all metrics," said Vibha Padalkar, MD and CEO, HDFC Life.HDFC Life's assets under management (AUM) for the June quarter crossed Rs 3 lakh crore with a growth of 22%.On Monday, HDFC Life shares were trading 0.85% higher, following the announcement of results, at Rs 640.95 on NSE.
