HDFC Life Insurance, one of India’s leading private life insurers, posted a 16% year-on-year increase in net profit for the fourth quarter of FY25, reporting ₹476.5 crore compared to ₹411.7 crore in the same period last year.
This performance reflects continued momentum across its protection, annuity, and savings products, along with a strong operational foundation that has helped navigate the dynamic insurance landscape.
With double-digit growth in net profit, new business value (VNB), and assets under management (AUM), HDFC Life continues to consolidate its position in the Indian life insurance industry.
Q4 FY25 Highlights
For the quarter ending March 31, 2025:
- Net Profit: ₹476.5 crore (up 16% YoY)
- Total Borrowings: ₹2,950 crore (vs ₹950 crore YoY)
- Debt-Equity Ratio: Increased to 0.18 from 0.06
- Solvency Ratio: 194% (well above 150% regulatory threshold)
Despite the surge in borrowings, the company maintained a strong solvency position and continued its growth trajectory.
Annual Financial Performance (FY25)
For the full financial year 2024–25 (FY25), HDFC Life delivered a solid performance across metrics:
- Annual Net Profit: ₹1,802 crore (up 15% YoY)
- Individual Annual Premium Equivalent (APE): Up 18% YoY
- Value of New Business (VNB): Up 13% YoY
- Assets Under Management (AUM): ₹3.36 lakh crore (up 15% YoY)
These results underline the insurer’s robust business model, product innovation, and sustained customer engagement.
Borrowings and Debt-Equity Ratio
HDFC Life’s total borrowings more than tripled to ₹2,950 crore in Q4 FY25 from ₹950 crore a year ago, driven by increased capital deployment needs and long-term growth strategies.
As a result, the debt-equity ratio rose to 0.18x, up from 0.06x. However, the company clarified that its capital adequacy remains healthy, supported by a strong equity base and disciplined financial management.
Strong Growth in AUM and Solvency Position
HDFC Life’s assets under management (AUM) reached ₹3.36 lakh crore, a 15% increase YoY. This marks another milestone for the company as it continues to expand its investment portfolio while maintaining high levels of policyholder trust.
Importantly, the solvency ratio remained at 194%, well above the IRDAI-mandated minimum of 150%. This gives the insurer a comfortable buffer to support new business growth and withstand market volatility.
Business Performance: APE, VNB, and Market Share
A key driver of performance in FY25 was HDFC Life’s sustained growth in individual APE (Annual Premium Equivalent) and Value of New Business (VNB):
- Individual APE: Rose 18% YoY, driven by balanced growth across channels and geographies
- VNB: Increased by 13%, reflecting product profitability and improved persistency ratios
In terms of market presence:
- Overall Market Share (Individual WRP): Rose by 70 basis points to 11.1%
- Private Sector Market Share: Rose by 30 basis points to 15.7%
This improvement demonstrates HDFC Life’s successful expansion into underpenetrated segments and its consistent dominance in the private sector space.
Management Commentary
Vibha Padalkar, MD & CEO of HDFC Life, expressed optimism about the company’s positioning in FY25.
“FY25 was a year where we deepened our reach, continued sharpening our value propositions, and demonstrated the resilience of our business model,” she stated.
She also emphasized the company’s focus on bancassurance, digital distribution, and customer retention, which played a critical role in its performance this year.
HDFC Life’s ability to execute across multiple distribution channels, including the recently integrated HDFC Bank network, has helped it broaden its reach and drive product mix optimization.
Dividend Announcement
The Board of Directors has recommended a final dividend of ₹2.1 per share for FY25, amounting to a total payout of ₹452 crore.
This is in line with HDFC Life’s dividend policy and reflects the company’s confidence in its earnings visibility and capital strength.
Conclusion
HDFC Life has closed FY25 on a strong note, with growth across critical business parameters such as net profit, APE, VNB, and AUM.
Despite the rise in borrowings, the company has maintained a healthy solvency position and demonstrated operational efficiency.
With a growing market share and a solid distribution network, HDFC Life appears well-positioned to capture future growth opportunities in India’s evolving insurance market.
The management’s focus on long-term profitability, innovation, and financial prudence reinforces investor confidence and cements the insurer’s place as a market leader in the life insurance space.
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