HDFC Life posts 14% rise in Sept quarter profit

Mumbai: HDFC Life Insurance reported a 14% increase in standalone net profit to ₹508 crore for the September quarter, compared with ₹447 crore a year earlier, as premium income rose and the insurer expanded sales of non-participating (non-par) savings, annuity and protection products.

Net premium income increased 16% to ₹21,727 crore from ₹18,777 crore in the corresponding quarter last year.

Value of new business (VNB) margin expanded 20 basis points to 24.7% against 24.5% a year ago. One basis point is a hundredth of a percentage point. Value of new business grew 12% to ₹2,040 crore.

Read more: Banks defy Treasury drag, clock double-digit profit growth in July-Sept quarter

The insurer's solvency ratio improved to 180% from 175% a year earlier, although it declined from 185% at the end of June. HDFC Life's board approved raising up to ₹500 crore through subordinated non-convertible debentures. Its total expenses to total premium increased to 22.3% from 21.6% in the first half of the financial year.

The company said the proposed overhaul of insurance distribution and commission rules could disrupt sales channels in the near term, with brokers and wholesale distribution likely to face the greatest impact. The company expects it to be implemented by April 1, 2027.

"Like with any material change, there will be disruption, but I remain extremely optimistic that once the disruption is digested by all market participants and the new norms emerge, we will be in a position stronger than today," Vibha Padalkar, MD and CEO, HDFC Life, said in an earnings call.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our ETMarkets WhatsApp channel)