HDFC Life Q2 PAT rises by 19% YoY; net premiums at Rs 13,138 crore

HDFC Life Insurance Company's consolidated net profit rose by 19.3% to Rs 329.02 crore on a 12.2% increase in total income to Rs 23,002.18 crore in Q2 FY23 over Q2 FY22.

While net premium income increased by 14.6% to Rs 13,137.89 crore, net income from investments rose by 10.2% to Rs 9,784.22 crore in the second quarter as compared with the same period last year.

Profit before tax in Q2 FY23 stood at Rs 330.54 crore, up by 18.9% from Rs 278.06 crore in Q2 FY22.

The company's consolidated net profit increased by 26.6% to Rs 690.42 crore despite a 15.6% fall in total income to Rs 29,638.96 crore in H1 FY23 over H1 FY22.

Vibha Padalkar, MD & CEO said As you may be aware, our subsidiary Exide Life merged with HDFC Life on October 14th, pursuant to the receipt of the final approval from IRDAI.

I would also like to take this opportunity to congratulate Suresh Badami, currently our Executive Director & Chief Distribution Officer, on his elevation to Deputy Managing Director. We look forward to continue building an industry-leading and customer-centric franchise.

On the business front, we continued to maintain a steady growth trajectory, growing by 11% in terms of total APE in H1 FY23 on a pre-merger basis i.e. excluding Exide Life. We have grown in line with the industry and faster than listed peers this quarter which also led to market share improvement from 14.6% in Q1 to 15.0% in Q2 on a pre-merger basis.

We have maintained our market leadership position as a top three life insurer across individual and group businesses. Market share in terms of individual WRP for the merged entity i.e. including Exide Life stands at 16.1% amongst private players and 10.2% within overall industry.

New business margin for H1 is 27.6%, up from 26.4% in H1 FY22, on a pre-merger basis. There has been margin expansion for both the existing business i.e. pre-merger and the acquired Exide Life business in H1 FY23. We are close to achieving our aspiration of maintaining FY22-margin neutrality for the combined entity, having delivered 26.2% NBM, compared to 26.4% in H1 FY22. The value of new business has grown by 16% on a pre-merger basis and is at Rs 1,258 crore for H1.

Our pre-merger embedded value as on 30 September 2022, is Rs 33,015 Crore, with an operating return on embedded value of 17.7% for H1 FY23. The embedded value of the merged entity is Rs 36,016 crore."

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.

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