HDFC Life Insurance Company rose 1.30% to Rs 612.30 after the company’s standalone net profit jumped 14.77% to Rs 411.66 crore on 5.46% rise in net premium income to Rs 20,488.11 crore in Q4 FY24 over Q4 FY23.
Net income from investments stood at Rs 7,251.41 crore in Q4 FY24, steeply higher from Rs 1,189.52 crore in Q4 FY24.
Profit before tax stood at Rs 449.71 crore in Q4 FY24, registering a growth of 66.70% as against Rs 269.77 crore posted in the corresponding quarter previous year.
On full year basis, the company’s net profit jumped 15.34% to Rs 1,568.86 crore on 9.15% increase in net premium income to Rs 61,959.22 crore in FY24 over FY23.
Assets under management (AuM) jumped 22% YoY to Rs 2,92,200 crore in FY24 as compared to Rs 2,38,782 crore posted in FY23.
The value of new business (VNB) declined 5% to Rs 3,501 crore in FY24 from Rs 3,674 crore posted in FY23. The company's Indian embedded value (IEV) in FY24 was at Rs 47,468 crore, registering a growth of 20% YoY.
The life insurer's new business margin fell to 26.3% in FY24 as against 27.6% recorded in FY23. The solvency ratio slipped to 187% in FY24 from 203% recorded in FY23.
Vibha Padalkar, MD & CEO said, “Despite the budget changes impacting high ticket sized business this year, we delivered a healthy growth of 20% for Q4 after adjusting for the one-off business of Rs 1,000 crore in March 2023. Our stated aspiration of a double-digit growth for the full year was achieved with us clocking an 11% growth for FY24, on a normalised basis. We achieved individual APE growth of 1% on an unadjusted basis.
Renewal collections grew by 18% YoY, demonstrating our customers' continued trust in us. Persistency for the 13th month and 61st month was 87% and 53% respectively. FY24 has been another landmark year for product launches, fuelled by relentless innovation and a desire to help meet our customers’ evolving requirements. Click2Achieve, our first DIY non-par savings solution has been received well across channels, leading to a healthy increase in the non-par savings proportion in the last quarter.
Our new business margins are 26.3%. Value of new business is Rs. 3,501 crore, implying a 2 year CAGR of 14%. Embedded value stands at Rs 47,468 crore, with an operating return on embedded value of 17.5%. We have delivered a strong profit after tax of Rs 1,569 crore, implying a YoY increase of 15%, fuelled by 18% increase in profit emergence from back book. Solvency continues to be healthy at 187%.
In addition to business developments, we would like to inform that Deepak Parekh has decided to step down as the chairman and non-executive director of the company with effect from close of business hours on April 18, 2024. Being the founder chairman of our company, Parekh has been instrumental in guiding and nurturing the company over the past 24 years. We thank Parekh for the immense contributions made by him and wish him the very best for the future.
We are also pleased to inform that the Board has unanimously approved the appointment of Keki M Mistry as the chairman of the board Keki M Mistry has been associated with the company since December 2000 and is currently a non-executive director on our board. Under his stewardship, we aim to achieve many more remarkable milestones and emerge stronger and more resilient than ever before.'
Meanwhile, the company has declared a final dividend of Rs 2 per equity share for FY24. The record date for the purpose of ascertaining the entitlement of the shareholders is fixed on Friday, 21 June 2024. The payment of final dividend will be made on or after July 20, 2024.
HDFC Life Insurance Company is a joint venture between HDFC, India's leading housing finance institution and Abrdn (Mauritius Holdings) 2006, a global investment company. HDFC Life is a leading long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity and health.