Total Annual Premium Equivalent (APE) for HDFC Life Insurance reached Rs 1,904 crore, gaining 22% from Rs 1,561 crore in the same quarter last year.
The standalone net profit for HDFC Life Insurance Company increased by 20.82 percent to Rs 365.29 crore in the first quarter of the fiscal year 2024 compared to Rs 302.35 crore in the first quarter of the fiscal year 2022. The life insurer’s net premium income increased by 22.99% year-over-year to Rs 9271.87 crore in the first quarter of the fiscal year’23 compared to Rs 7538.48 crore in the same period a year before.
The entire amount of annualised premium equivalent (APE) skyrocketed by 22 percent to 1,904 crore rupees. The overall embedded value of HDFC Life was calculated to be Rs 29,709 crore, representing a year-over-year increase of 9%. According to the insurance company, its product mix has remained balanced, with non-par savings accounting for 35%, participation products accounting for 30%, ULIPs accounting for 25%, individual protection accounting for 5%, and annuity accounting for 6%, all based on individual APE.
“We continue to keep up with our constant growth trajectory, expanding our APE by 22 percent in the first quarter.” said Vibha Padalkar, the Managing Director and Chief Executive Officer of HDFC Life Insurance, “This has helped us to sustain our market leadership as a “Top 3 life insurer” across individual and group business.”
With a market share of 19 percent for overall new business in the private sector and 14.6 percent for individual new business sectors, HDFC Life is in the top two in terms of overall new business and individual new business segments. With a market share of 22.2 percent, it holds the number one spot in the group new business category in the private sector.
Padalkar said that Exide Life Insurance, which it recently acquired by the company, had 34 percent growth based on the individual weighted received premium (WRP) and continues to benefit from a strong product mix and growth across channels.
Integration of Exide Life is proceeding as planned. We have obtained the first authorisation from the NCLT to initiate the merger procedure, including notifications to relevant regulatory bodies and accompanying no objection certifications (NOCs). We anticipate receiving the final approval from IRDAI (the insurance regulator) and being able to join the subsidiary in the second part of the fiscal year 2024,” she added.
As of the 31st of March, the total embedded value of Exide Life was at Rs 2,910 crore, representing an increase of 8% over the previous month.
Following the publication of HDFC Life Insurance’s quarterly results, the company’s stock began trading 0.65% down at Rs 539.20 on the NSE. The share price has fallen by more than 30 percent from its 52-week high of Rs 775.6. This company, which has been a favourite of many long-term investors due to the structural growth narrative in an under-penetrated insurance market in India, has seen a decline of over 30 percent.
