HDFC Life Q1 net profit up 21%; shares fall

The company’s new business margin increased to 26.8% from 26.2% in the first quarter of last year, due to a profitable product mix and growth in the security business, while it saw a 25% increase in the value of new business (VNB). 510 crores.

Total Annual Premium Equivalent or APE increased by 22% 1,904 crores while its total embedded value was 29,709 crore, up 9% from the year-ago quarter. The assets under management (AUM) of the private insurer increased by 10% during the 2,00,123 crore to 1,81,272 years

Commenting on the performance of Q1 FY23, Vibha Padalkar, MD & CEO HDFC Life said, “We continue to maintain a consistent growth trajectory with a growth of 22% in terms of APE in Q1 FY23. This has enabled us to maintain our market leadership as the ‘Top 3 Life Insurer’ in individual and group business.” Our product mix remains balanced, with non-par savings of 35%, participating products at 30%, ULIPs at 25%, personal protection at 5% and annuities at 6%, based on individual APE “

Post dividend payout of Rs. 1.70 per share, approved by its shareholders at the Annual General Meeting (AGM), HDFC Life has a solvency of 178%. To further strengthen solvency to fuel growth, the company said it will continue to evaluate equity capital raising as and when required.

“Our security share based on APE increased from 15.7% last year to 16.9% during Q1 FY23. Our Credit Protect business has posted strong growth of 96%, driven by increased disbursements across most of our partners. We continue to approach overall security development in an agnostic way across individual and group platforms,” ​​Padalkar said.

Moreover, its pension subsidiary HDFC Pension has crossed the 30,000 crore AUM mark and almost doubled its AUM in just 15 months. As of June 30, 2022, HDFC Pension had a market share of 38%, retaining its leadership position as Private Pension Fund Manager (PFM) in terms of NPS AUM.

first article