HDFC Life Reports Strong FY25 with ₹1,802 Crore Profit

21 Apr 2025 , 12:07 PM

HDFC Life Insurance posted a strong performance for the year ended March 2025, with the support of premium growth and sustained profitability.

In FY25, the firm achieved an 18% YoY growth in Individual APE, reflecting sustained demand for its insurance products. The Value of New Business (VNB) increased by 13% during the year, demonstrating enhanced operational efficiency and product mix. During Q4 FY25, HDFC Life’s APE was ₹5,186 crore.

VNB during Q4FY25 increased 11% YoY to ₹1,376 crore, reflecting excellent value generation from new policies. The VNB margin for the period widened by 30 basis points YoY to 26.5%, as a result of improved profitability per policy sold.

HDFC Life’s combined market share in the life insurance sector grew by 70 basis points to 11.1%, while that in the private sector grew by 30 basis points to 15.7%. The firm achieved a 15% YoY growth in assets under management (AUM) at ₹3.36 lakh crore as of FY25.

Persistency ratios were robust, with 13th-month persistency at 87% and the 61st-month persistency significantly improving to 63%, a 1,000 basis point YoY increase reflecting long-term policyholder retention.

Profit after tax (PAT) at ₹1,802 crore for FY25 reflected a 15% YoY growth, reflective of financial solidity and profitability. The company declared a final dividend of ₹2.1 per share for the year, rewarding its shareholders.

HDFC Life has further enhanced its digital capabilities, with more than 90% of service requests now being serviced through self-service digital platforms, improving customer experience and operational efficiency.

In the words of CEO Vibha Padalkar, FY25 was characterized by increasing market presence, refining value propositions, and demonstrating the resilience of the business model.

She also stated that protection APE retail grew by 25% YoY and all distribution channels experienced double-digit growth, reaffirming the diversified growth strategy of the company. As HDFC Life enters its 25th year, the company will look to outpace industry growth consistently, align growth in VNB with APE, and double key performance metrics every 4 to 4.5 years, under a stable regulatory environment.