HDFC Life posts 14% rise in Sept quarter profit
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.
HDFC Life Insurance witnessed a 14% surge in its standalone net profit for the September quarter, reaching ₹508 crore, compared to ₹447 crore in the same period last year. This growth was driven by a 16% rise in premium income, which reached ₹21,727 crore, up from ₹18,777 crore previously. The insurer also expanded its sales of non-participating savings, annuity, and protection products.
The value of new business margin improved to 24.7%, up from 24.5% a year earlier, while the value of new business grew 12% to ₹2,040 crore. HDFC Life's solvency ratio improved to 180% from 175% a year earlier, although it decreased from 185% at the end of June. The company has approved raising up to ₹500 crore through subordinated non-convertible debentures.
However, the proposed changes in insurance distribution and commission rules could disrupt sales channels in the short term, with brokers and wholesale distribution likely to be the most affected. These changes are expected to take effect by April 1, 2027. HDFC Life's MD and CEO, Vibha Padalkar, expressed optimism about the company's resilience in the face of these challenges, stating that once the disruption is overcome and new norms emerge, the company will be stronger than ever.
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