HDFC Life Q4 Results: Cons PAT rises 15% YoY to Rs 475 crore, revenue jumps 16%

HDFC Life Insurance Company on Thursday reported a 15% year-on-year (YoY) rise in its Q4FY25 net profit to Rs 475 crore, compared to Rs 411 crore in the year-ago period. Net premium income for the quarter ended March stood at Rs 23,842 crore, up 16% YoY from Rs 20,533 crore in the corresponding quarter of the previous financial year.

The company’s board also recommended a final dividend of Rs 2.10 per equity share for the financial year 2024–25.

The company attributed its topline growth to strong individual APE growth of 18%, supported by an increase in both the number of policies sold and average ticket size, along with a balanced product mix.

HDFC Life’s Assets Under Management (AUM) stood at Rs 3,36,282 crore as of March 31, 2025, reflecting a 15% year-on-year increase.

Market Share

The company’s overall market share (individual WRP) rose by 70 basis points to 11.1% for the period 11MFY25, according to the company filing. The private sector market share increased by 30 basis points to 15.7%.

Solvency Ratio

The solvency ratio stood at 194%, comfortably above the regulatory threshold of 150%.Profit After Tax (PAT) for the full financial year stood at Rs 1,802 crore, reflecting a 15% year-on-year growth, supported by an 18% increase in profit emergence from the company’s back book.

Management Commentary

Commenting on the earnings, MD & CEO Vibha Padalkar described FY25 as a year in which the company deepened its reach.

“We are happy to report an 18% growth in Individual APE for FY25, in line with our stated growth aspirations for the year. Our overall industry market share expanded by 70 basis points to 11.1%, and by 30 basis points to 15.7% within the private sector. Retail protection continued to show strong momentum with APE growth of 25%. All channels registered double-digit growth. We continue to enhance customer experience through intuitive digital platforms, with over 90% of service requests now handled via self-service,” she said.

Value of New Business (VNB)

VNB grew by 13% to Rs 3,962 crore in FY25.

Persistency

The 13th-month and 61st-month persistency ratios stood at a strong 87% and 63%, respectively. Notably, the 61st-month persistency improved by 1,000 basis points, reflecting the company’s deep customer engagement and effective retention initiatives.