HDFC Life’s FY25 Results Highlight Growth, Resilience, and Market Gains
HDFC Life reported robust financial performance for the fiscal year ending March 31, 2025. The insurer recorded a significant 18% growth in Individual Annualised Premium Equivalent (APE), underscoring its consistent delivery amid sectoral challenges.
The Board approved the audited results, revealing a steady performance across all key metrics. The company’s strategy focused on value-driven growth, improved customer retention, and increased market penetration.
Topline Growth and Market Share Expansion
HDFC Life’s individual APE grew by 18% to ₹13,619 crore, driven by a rise in policies sold, higher ticket sizes, and a diversified product mix. Total APE rose 16% to ₹15,479 crore. New business premiums, including group policies, stood at ₹33,365 crore, up 13% year-on-year.
The company’s overall market share (individual WRP) rose by 70 basis points to 11.1% for the 11-month period ending February 2025. Within the private sector, its share increased by 30 basis points to 15.7%.
Value Creation and Profit Growth
The Value of New Business (VNB) jumped 13% to ₹3,962 crore, reflecting strong growth in profitable segments. The Indian Embedded Value (EV) rose 17% to ₹55,423 crore, with a healthy operating return on EV at 16.7%.
Profit after tax for the year stood at ₹1,802 crore, marking a 15% increase. This growth was supported by an 18% rise in profit emergence from its existing business. The Board recommended a final dividend of ₹2.1 per share, amounting to ₹452 crore.
Strong Persistency and Operational Efficiency
Persistency ratios, key indicators of customer retention, remained solid. The 13th-month persistency stood at 87%, while the 61st-month persistency improved sharply by 1,000 basis points to 63%.
The company maintained a healthy solvency ratio of 194%, well above the regulatory requirement of 150%. Total expenses as a percentage of total premium increased slightly from 19.4% to 19.8%.
Growing Assets and Distribution Strength
Assets under management reached ₹3.36 lakh crore, up 15% from the previous year. The company continues to rely on a balanced distribution mix: 65% from corporate agents, 18% from agency, 10% from direct sales, and 7% via brokers.
The product portfolio remained well diversified. Unit-linked plans accounted for 39% of individual APE, followed by non-par savings (32%), participating products (19%), and annuity and protection plans (10%).
Technology and Employee Excellence
More than 90% of customer service requests are now handled through self-service digital platforms. The company was certified as a Great Place to Work in 2025 and recognised among India’s top 50 innovative workplaces.
It also received accolades for inclusivity and diversity, including “Best Companies for Women in India 2024” in the BFSI sector and “Most Inclusive Companies in India 2024” by Avtar and Seramount.
CEO Outlook: Growth, Innovation, and Customer Focus
Managing Director and CEO Vibha Padalkar stated that FY25 marked a year of deeper customer engagement and expansion. Retail protection business grew 25% in APE terms, with all distribution channels recording double-digit growth.
She added that as HDFC Life enters its 25th year, the company aims to outpace industry topline growth, align VNB growth with APE expansion, and double key metrics every 4 to 4.5 years.
