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HDFC Life achieves 18% VNB growth driven by 31% growth in individual APE, 22% increase in number of policies

Staff Reporter : Kolkata, July 15, 2024: The Board of Directors of HDFC Life approved and adopted the reviewed standalone and consolidated financial results for the quarter ended June 30, 2024. The company has reported significant growth across several key metrics, setting a positive momentum for the fiscal year.

Commenting on the results, Ms. Vibha Padalkar, MD & CEO, HDFC Life, said, “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.

We welcome the positive impact of IRDAI’s progressive reforms that are expected to significantly strengthen the life insurance proposition in India, making it simpler, more transparent and ultimately more attractive to prospective customers”

Key Highlights:
• Market Share Expansion: Private market share expanded from 16.4% in Q1FY24 to 17.1% in Q1FY25, and the overall market share in Individual WRP increased to 11.4%
• Retail Sum Assured Growth: Achieved 46% growth, bolstered by higher sum assured multiples for savings products and strong rider attachment and aided by 28% growth in retail protection
• Profit After Tax: Grew by 15% to Rs 478 crore, with a growth in backbook surplus of 18%
• Assets Under Management (AUM): Surpassed Rs 3 lakh crore, with a growth of 22%
• Geographic Growth: Strong topline growth recorded across Tier 1, 2, and 3 geographies
• Bonus Declaration: Declared highest ever bonus of Rs 3,722 crore, to more than 22 lakh par policyholders

HDFC Life registered a strong increase in the number of policies and witnessed 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.

Product Mix: ULIPs accounted for 38%, non-par savings for 35%, participating products for 16%, term for 6%, and annuities for 5%, based on individual APE. The ULIP mix was initially elevated, but moderated during the 2 quarter with the launch of products across other categories. Non-par products bounced back, clocking a 41% YoY increase. The latest Click2Achieve variant garnered Rs 100 crore of new business in merely 16 days.

Value of New Business (VNB): Q1 VNB was Rs. 718 crore, reflecting a healthy 18% growth both YoY and on a two-year CAGR basis. The substantial gap in financial protection across India presents a compelling growth opportunity for the life insurance sector. HDFC Life is committed to securing India’s future through innovative insurance solutions.