Leading life insurance firm, HDFC Life posted a standalone PAT of ₹358.66 crore in March 2023 quarter, rising by 13.8% from ₹315.22 crore in the preceding quarter. The company declared a dividend of ₹1.90 per equity share. The insurer closed the fiscal year FY23 on a strong note delivering growth across all key metrics.
However, year-on-year, the growth in PAT was merely 0.31% from a profit of ₹357.52 crore in Q4 of FY22.
HDFC Life witnessed double-digit growth in net premium incomes which came in at ₹19,426.57 crore in Q4FY23, increasing by 35.9% YoY and 35.1% QoQ.
Net commissions also picked up in the quarter under review to ₹1,111.43 crore versus ₹620.74 crore in Q4FY22 and ₹692.83 crore in Q3FY23.
On a consolidated basis, the net profit of ₹361.97 crore in the fourth quarter ending March 31, 2023 period. The PAT surged by 14.6% compared to ₹315.91 crore in the preceding quarter. However, year-on-year, the profit registered a decline of 28.5% from ₹506.19 crore recorded in Q4FY22.
Consolidated net premium income came in at ₹19,468.60 crore in Q4FY23, surging by 24.6% YoY and 35.2% QoQ.
Vibha Padalkar, MD & CEO said “As you may be aware, the RBI has permitted HDFC Bank or HDFC Ltd to increase their shareholding in HDFC Life to more than 50% prior to the effective date, thus clearing any uncertainty around HDFC Bank’s eventual shareholding in us. We look forward to collaborating with our parent to be, towards creating value for all stakeholders."
Padalkar added, "We closed the year with a strong growth of 27% in individual WRP with a market share of 16.5% and 10.8% in the private and overall sectors respectively, clocking expansion of 40 and 70 basis points respectively. We continue to grow faster than the private industry and be ranked amongst the top 3 life insurers across individual and group businesses. In terms of Individual WRP, we have outpaced the private industry over multiple timeframes including, in the past 3, 5, and 7 years, thereby consistently demonstrating growth leadership."
Additionally, Padalkar highlighted that there has been an increase in protection share in total NBP from 24% in FY22 to 29% in FY23. Overall protection APE grew by about 20% in FY23. Retail protection trends remain encouraging with sequential growth being over 50% and YoY growth being over 40% in Q4.
Also, the annuity business in FY23 grew by 18% on a received premium basis compared to a 2% growth for the industry. APE growth is much higher at 59% due to a pickup in our regular premium annuity product - Systematic Retirement Plan during the year
Additionally, the company's new business margin for the year was 27.6% thereby delivering the value of new business of ₹3,674 crore. which is a growth of 37%. Margin neutrality, after considering the acquired business, was achieved well ahead of target, Padalkar added.
Going ahead, Padalkar said, "We are optimistic about the growth prospects of the industry and are committed to driving a significant increase in insurance penetration in line with the regulator’s vision."
In a meeting held on Wednesday, HDFC Life's board of directors recommended a final dividend of ₹1.90 per equity share having a face value of ₹10 each for the fiscal year FY23. This is subject to the approval of the Shareholders at the ensuing Annual General Meeting (AGM).
On BSE, HDFC Life stock closed at ₹531.90 apiece marginally up from the previous session's print.
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