HDFC Life Insurance Company reported 15.19% increase in standalone net profit to Rs 315.22 crore in Q3 FY23 as against Rs 273.65 crore posted in Q3 FY22.
The life insurer's net premium income jumped 18.6% to Rs 14,379.38 crore in quarter ended 31 December 2022 as compared with Rs 12,124.36 crore recorded in Q3 FY22.
Net income from investments soared 148.66% year on year to Rs 4,927.97 crore in Q3 FY23.
Profit before tax stood at Rs 314.24 crore in Q3 FY23, registering a growth of 14% as against Rs 275.9 crore posted in the corresponding quarter previous year.
For 9 months FY23, the company's standalone net profit rose 17.8% to Rs 1,001.47 in 9M FY23 from Rs 850.17 crore registered in the same period a year ago. Net premium income in 9M FY23 stood at Rs 37,337.44 crore, up by 20.03% over 9M FY22.
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Assets under Management (AuM) jumped 20.08% to Rs 2,33,839 crore in 9M FY23 as compared to Rs 1,94,738 crore reported the same period last year.
The Value of New Business (VNB) increased by 21.52% to Rs 2,163 crore in 9M FY23 as against Rs 1,780 crore in 9M FY22. The company's Indian embedded value (IEV) in 9M FY23 was at Rs 37,702 crore, registering a growth of 27.62% year on year.
The life insurer's new business margin was consistent at 26.5% in 9M FY23. The solvency ratio improved to 209% in 9M FY23 as against 190% recorded in 9M FY22.
Vibha Padalkar, MD & CEO said While globally, headwinds persist from an economic perspective, India appears to be relatively better positioned. Insurance as a sector continues to be a beneficiary of a relatively robust economy, stable savings trends and favourable regulatory regime. Against this backdrop, we continue to maintain a steady growth trajectory. In Q3, we grew by 17% in terms of Individual WRP, which is ahead of industry growth. On a YTD basis, we grew by 13% leading to a market share of 15.8% amongst private insurers. Despite intense competition, we have consistently been ranked amongst the top 3 life insurers across individual and group businesses.
We maintained market leadership in credit life by delivering strong growth of 52%, across nearly 300 partnerships. Whilst growth in retail protection remained tepid on a YoY basis, we saw sequential growth of 13% in Q3. With a combination of data analytics, insights into customer profiles and calibrated risk retention, overall protection APE grew by over 20% in 9M FY23 and we expect individual protection to continue picking up in the coming quarters.
On the retirement front, we have steadily gained market share in the annuity business. Our annuity business in 9M FY23 grew by 22% on received premium basis compared to a 1% growth for the industry. Our distribution network has been growing with time, as we build newer, long-lasting partnerships. This quarter, we are pleased to announce our corporate agency partnership with AU Small Finance Bank. Our agency channel continued to grow faster clocking more than 2x company level growth in individual APE in 9M FY23. The share of the channel has increased from 14% to almost 18% in the merged entity.
Our subsidiary HDFC Pension Management Company's AUM doubled in less than 17 months to reach the Rs 40,000 Cr milestone on 2nd January, 2023. For 9MFY23, HDFC Pension has a market share of 40%, up from 37% last year, with AUM growing by 63%.
HDFC Life Insurance Company is a joint venture between HDFC, India's leading housing finance institution and Abrdn (Mauritius Holdings) 2006, a global investment company. HDFC Life is a leading long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity and health.
Shares of HDFC Life Insurance Company slipped 2.58% to Rs 589.30 on the BSE.
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