HDFC Life July-September Profit Inches up 3% as Investment Income Slumps

HDFC Life Insurance Co. Ltd. reported a 3.3% year-on-year rise in its September quarter net profit to ₹4.47 billion, as weak investment income weighed on overall performance. Sequentially, profit declined over 18%.

Revenue from investments in the policyholders’ account fell sharply by ₹102 billion on year to ₹14.10 billion, dragging total income down 29% to ₹203.15 billion. A steep fall in actuarial liabilities—down 52% on year—and a 9% decline in benefits paid helped offset some of the weakness.

Net premium income rose 13% on year to ₹187.77 billion. Total expenses in the policyholders’ account dropped 27% on year to ₹204.87 billion, though commissions rose 25% to ₹23.21 billion and management expenses climbed 16% to ₹41.01 billion.

The insurer’s assets under management increased 11% on year to ₹3.60 trillion as of Sept. 30, with a debt-to-equity mix of 69:31. Its solvency ratio stood at 175%, down from 181% a year ago. To strengthen its capital position, the board approved raising up to ₹7.50 billion via subordinated debt.

For April-September, net profit rose 9% to ₹9.94 billion, and net premium income grew 15% to ₹334.11 billion. The value of new business increased 10% to ₹18.18 billion, with margins steady at 24.5%.