HDFC Life's Q4 Net Profit Up 15% To Rs 411 Cr, Beats Estimates

HDFC Life Insurance, a leading private sector insurer, reported a net profit of Rs 411 crore for the January-March quarter of the fiscal year 2023-24. This marked a 14.8 per cent increase from Rs 358 crore recorded in the corresponding period of the previous year, surpassing market expectations of 6.1 percent growth to Rs 382.1 crore.

The insurer's net premium income rose to Rs 20,488 crore, up 5.4 per cent from Rs 19,426 crore in the year ago quarter. Despite the growth, the solvency ratio decreased to 187 per cent from 203 per cent a year earlier.

HDFC Life's annualised premium equivalent (APE), a measure of new business written, declined by 8 percent to Rs 4727 crore compared to Rs 5162 crore a year ago, slightly missing market expectations of a 7 per cent decrease.

The value of new business (VNB) margin, reflecting the future profits associated with new business, fell by 18.3 per cent to Rs 1234 crore, against market estimates of a 15 per cent decline. The company also proposed a dividend of Rs 2 per share.

Following the earnings announcement, HDFC Life's shares were trading nearly 0.95 per cent higher at Rs 610.20 apiece on the BSE at 2:36 pm.

In other developments, veteran banker Deepak Parekh stepped down from the role of Chairman and Non-Executive Director, with Keki M Mistry appointed as the new Chairman of the Board. Additionally, independent directors VK Viswanathan and Prasad Chandran concluded their two consecutive terms of five years each on 24 April 2024, while Venkatraman Srinivasan was appointed as an Independent Director.