HDFC Life Q4 FY25 results: Net profit rises 16% to ₹476.54 crore

HDFC Life on Thursday reported a 16 per cent year-on-year (YoY) growth in its net profit at ₹476.54 crore in the fourth quarter of the financial year 2025 (Q4FY25), compared to ₹411.6 crore in the corresponding year ago period, supported by the back book.

 

“Growth in PAT (profit after tax) was aided by almost 18 per cent growth in the back book, which means all the policies we sold before last year are likely generating profits now. So 18 per cent growth in back book offset by new business strain meant net growth of 15 per cent,” said Vibha Padalkar, MD & CEO, HDFC Life Insurance.

 

 

Net profit of the company grew by 15 per cent Y-o-Y in FY25 to ₹1,802 crore.

 

Net premium income increased by 16 per cent Y-o-Y to ₹23,765.56 crore in Q4FY25. And, annualised Premium Equivalent (APE) rose by 9.7 per cent Y-o-Y to ₹5,186 crore.

 

Total APE of the insurer in FY25 registered 16 per cent Y-o-Y growth to ₹15,479 crore and the new business premium in FY25 grew 13 per cent YoY to ₹33,365 crore.

 

Value of New Business (VNB), measure of profitability, of the insurer improved by 11.51 per cent YoY to ₹1,376 crore in the quarter under review. While, the VNB Margin improved to 26.53 per cent as against 26.10 per cent in Q4 FY24.

 

The expenses of the company rose by 9.34 per cent Y-o-Y to ₹4301 crore from last year driven by nearly 19 per cent growth in net commissions to ₹2581.4 crore.

 

Aided by ₹2,000 crore fund raised through sub-debt in the quarter, the solvency ratio improved to 194 per cent as against the regulatory mandate of 150 per cent. It was 187 per cent in Q4FY24. While, the persistency ratio of the insurer in the Jan-April quarter was weak with a 13th month persistency ratio at 82.7 per cent as compared to 86.2 per cent in the same quarter last year.

 

On the other hand, 61st month persistency ratio was at 61.9 per cent in the quarter under review as compared to 52 per cent in the Q4 FY24.

 

The company’s board of directors has proposed a final dividend of ₹2.10 per share for FY25. The payment is subject to the approval of shareholders in the annual general meeting of the company.  

HDFC AMC Q4 profit up 18%

 

HDFC Asset Management Company (AMC) on Thursday reported an 18 per cent year-on-year (Y-o-Y) rise in the fourth quarter of financial year (FY) 2025 at ₹639 crore. 

 

The operating profit went up 36 per cent to ₹712 crore. For FY25, the company reported a net profit of ₹2,461 crore, up 26 per cent compared to FY24. Revenue from operations in FY25 went up 35 per cent to ₹3,498 crore, HDFC AMC said.

 

The AMC had an 11.5 per cent share in the assets under management (AUM) of the mutual fund industry in the fourth quarter. In the actively managed equity scheme space, the market share was 12.8 per cent.