- 16 Jul 2024
- ICICI Securities
HDFC LIFE INSURANCE DELIVERED HEALTHY Q1FY25 RESULTS
HDFCLIFE - 712 Change: -7.85 (-1.09 %)News: HDFC Life Insurance delivered healthy Q1FY25 results with a 15% YoY rise in net profit and an 18% increase in backbook surplus. Premium growth came in at 9% YoY, driven by both new business premium (up 9% YoY to ₹ 6,400 crore) and renewals (10% increase YoY). Product-wise, unit linked and non-par business witnessed strong traction, while par segment remained slower. Value of new business (VNB) grew by 18% YoY to ₹ 718 crore, although VNB margin contracted by 120 basis points to 25%, due to change in product mix. AUM surpassed ₹ 3 lakh crore, while embedded value stood at ₹49611 crore, up 19%.
Views: Management emphasized growth strategy, including expanding distribution channels like bancassurance and agency, and leveraging technology through Project Inspire (to be rolled out between Q3 or Q4 this year). The management is confident of achieving their ambitious target of doubling their VNB in 4 years. Capital raising plan to the tune of ₹2000 crore, to strengthen solvency which currently is at 186%. Impact from new surrender norms not expected to be substantial given significant proportion of paid-up policies.
Impact: Neutral