HDFC LIFE INSURANCE COMPANY LIMITED - Quarterly Result Update Q4'425

HDFC Life Q4FY25 Results: Improving margins and market share, in line with street’s estimate. HDFC Life Insurance Company, on consolidated basis, has recorded 15% increase in net profit to Rs 475.36 crore in the quarter ended March 2025 (Q4FY2025). The total premium income has increased 15% to Rs 24,032 crore in Q4FY2025, driven by 15% jump in the renewal premium collection to Rs 13,063 crore. Further, the new business premium also increased 15% to Rs 10,969 crore. APE moved up 10% to Rs 5,186 crore as individual APE increased 9% to Rs 4,633 crore in Q4FY2025. The company has exhibited an improvement in the persistency level with 13th month persistency remaining healthy at 87% in Q4FY2025 from 87% in Q4FY2024, while 61st month persistency jumped to 63% from 53%. The value of new business (VNB) galloped 12% to Rs 1,376 crore in Q4FY2025. New business margin for FY2025 stood at 25.60% showing jump on sequential basis from 25.10% for 9MFY25 while eased from 26.30% in FY2024. The embedded value surged 17% Rs 55423.0 crore end March 2025. An operating return on embedded value rose on sequential basis to 16.70% for FY2025 up from 16.00% in 9MFY2025, while moved up from 16.5% in FY2024. AUM of the company increased 15% to Rs 336,282 crore end March 2025 from Rs 292,220 crore end March 2024 crore and also moved up from Rs 328,684 crore a quarter ago. The consolidated Networth stood at Rs 15,708 crore end March 2025, while the solvency ratio of the company was at 194% end March 2025. Embedded Value per share stood at Rs 257.4 per share at end March 2025.