HDFC Life’s fourth-quarter results reveal a 13.7% year-on-year profit increase, surpassing expectations, reaching Rs 411.64 crore.

0
116
HDFC Life

HDFC Life’s fourth-quarter results:

Private sector insurer HDFC Life Insurance reported a fiscal fourth-quarter profit of Rs 411.64 crore on Thursday, marking a 13.7% increase from Rs 361.97 crore in the same period last year, surpassing market expectations. Anticipated to achieve a 6.1% profit growth at Rs 382.1 crore, HDFC Life exceeded projections. The net premium income for the quarter ended March 31, 2024, reached Rs 20,533.71 crore, reflecting a 5.5% rise from Rs 19468.60 crore in the corresponding quarter last year.

Furthermore, the company’s board declared a final dividend of Rs 2 per equity share with a face value of Rs 10 each for the financial year 2023-24. The record date for determining shareholders’ entitlement to the final dividend is set for Friday, June 21, 2024. Payment of the final dividend, subject to applicable tax deductions at source, is scheduled for or after July 20, 2024, as stated in a regulatory filing.

HDFC Life Insurance saw a decrease of 8% in its annualised premium equivalent (APE), a key metric for measuring new business generated by a life insurance company, contrary to market predictions of a 7% decline. In Q4FY24, the APE amounted to Rs 4727 crore, down from Rs 5162 crore in the corresponding period last year.

Vibha Padalkar, MD & CEO, remarked, “Despite the impact of budget changes on high-value business this year, we achieved robust growth of 20% in Q4, adjusting for the one-off business of Rs 1,000 crore in March 2023. Our objective of achieving double-digit growth for the full year was realized, with an 11% growth clocked for FY24 on a normalized basis. Individual APE growth stood at 1% on an unadjusted basis.”

HDFC Life highlighted an 18% year-on-year growth in renewal collections. Additionally, persistency rates for the 13th and 61st months reached 87% and 53% respectively.

“FY24 witnessed significant product launches driven by continuous innovation and a commitment to meeting our customers’ evolving needs. Click2Achieve, our inaugural DIY non-par savings solution, received positive feedback across channels, contributing to a notable increase in the non-par savings segment in the last quarter,” the company noted.

LEAVE A REPLY

Please enter your comment!
Please enter your name here