Q1 2025 HDFC Life Insurance Company Ltd Earnings Call Transcript
Key Points
- HDFC Life Insurance Company Limited (NSE:HDFCLIFE) achieved a robust year-on-year growth of 31% based on individual APE, translating to a two-year CAGR of 21%.
- The company registered an increase of 22% in the number of policies and a ticket size expansion of 7%.
- Retail protection experienced significant growth of 28% based on individual APE and a robust 36% on a two-year CAGR basis.
- The bancassurance channel experienced over 40% growth in individual APE, with counter share in HDFC Bank reaching 66% by the end of the quarter.
- The assets under management of HDFC Pension Fund Management grew by 67% year-on-year, surpassing INR88,000 crore.
- New business margins decreased to 25% compared to 26.2% last year, primarily due to product mix and continued investments in infrastructure, manpower, and technology.
- The credit protect segment remained flat due to slower disbursement in certain lines of business and increased competitive intensity across select partners.
- The solvency ratio stands at 186%, and the company plans to raise sub-debt up to INR2000 crore, indicating a need for additional capital to fuel growth.
- Persistency for the 61st month improved to 56%, but this still indicates a significant drop-off in policy renewals over the long term.
- The annuity business faced intense competition and aggressive pricing by some peers, leading to a calibrated growth strategy focusing on enhancing product offerings while maintaining pricing discipline.
Ladies and gentlemen. Good day, and welcome to the Q1 FY25 HDFC Life Insurance Company Limited conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Vibha Padalkar, MD and CEO of HDFC Life Insurance. Thank you. And over to you, ma'am.
Good evening. I would like to welcome everyone to our earnings conference call for the quarter ended June 30, 2024. Our results, which includes the investor presentation, press release and regulatory disclosure have already been made available on both our website and the stock exchanges. Joining me are Suresh Badani, Deputy Managing Director; Niraj Shah, ED and CFO; Vineet Arora, ED and COO; Eshwari Murugan, our appointed Actuary, and Kunal Jame SVP, Investor Relations and Business Planning.
Moving on to key highlights of quarter one FY25. Starting with operating performance, we have kicked off the year on a strong note,
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