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HDFC Life Q4 results: Net profit rises 15%, company misses FY24 guidance on VNB margin
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
HDFC Life Insurance on Thursday (April 18) reported 14.8% rise in net profit to ₹411 crore for the fourth quarter of FY24. In the same period last year, the company had recorded a net profit of ₹358 crore. Despite this growth, the company’s Value of New Business (VNB) margin experienced a decline, dropping by more …
HDFC Life Insurance on Thursday (April 18) reported 14.8% rise in net profit to ₹411 crore for the fourth quarter of FY24. In the same period last year, the company had recorded a net profit of ₹358 crore.
Despite this growth, the company’s Value of New Business (VNB) margin experienced a decline, dropping by more than 300 basis points year-on-year to 26.1%, slightly lower than the estimated 27.7%.
The VNB also saw a decline, standing at ₹1,234 crore compared to ₹1,511 crore in the same period last year.
In terms of total Annualised Premium Equivalent (APE) for Q4, HDFC Life recorded ₹4,727 crore, down from ₹5,162 crore in the previous year.
Despite these fluctuations, the net premium income of the insurer reached ₹20,488 crore, a 5.4% increase from ₹19,426 crore in the corresponding quarter of the previous year.
However, the company’s solvency ratio witnessed a decline, standing at 187% compared to 203% recorded a year ago.
HDFC Life noted positive growth in Tier 2/3 markets, exceeding industry-level growth by 13%.
Annuity and protection contributed nearly half of the new business premium.
Operating Return on Embedded Value (ROEV) stood at 17.5%, with Indian Embedded Value reaching ₹47,468 crore.
The company proposed a final dividend of ₹2 per share.
In a boardroom change, Deepak Parekh stepped down from the role of Chairman and Non-Executive Director, with Keki M Mistry appointed as the new Chairman of the Board.
Additionally, independent directors VK Viswanathan and Prasad Chandran will cease their roles after completing two consecutive terms of five years each on April 24, 2024.
Venkatraman Srinivasan has been appointed as an Independent Director to fill the vacancy.
Following the earnings announcement, shares of HDFC Life were trading nearly 0.95% up at ₹610.20 apiece on the BSE.
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