Navigating well through sectoral changes with focus on increasing volumes, retail protection and making meaningful in roads into Bharat
Mumbai, April 18, 2024: The Board of Directors of HDFC Life approved and adopted today the audited standalone and reviewed consolidated financial results for full year ended March 31, 2024.
Double-digit APE growth1 of 11% for full year and 20% growth for Q4
Growth of 13% in Tier 2/3 markets, faster than industry level growth2
Profit after Tax grew by 15%
47% growth in sum assured, aided by 27% growth in retail protection
Annuity and protection comprises nearly half of new business premium
Operating ROEV at 17.5%; Indian Embedded value at Rs 47,468 crore
Proposed final dividend of Rs 2 per share
Commenting on results for full year ended March 31, 2024, Ms. Vibha Padalkar, MD & CEO said “Despite the budget changes impacting high ticket sized business this year, we delivered a healthy growth of 20% for Q4 after adjusting for the one-off business of Rs. 1,000 crore in March 2023. Our stated aspiration of a double-digit growth for the full year was achieved with us clocking an 11% growth for FY24, on a normalised basis. We achieved individual APE growth of 1% on an unadjusted basis. Renewal collections grew by 18% YoY, demonstrating our customers' continued trust in us. Persistency for the 13th month and 61st month was 87% and 53% respectively. FY24 has been another landmark year for product launches, fuelled by relentless innovation and a desire to help meet our customers’ evolving requirements. Click2Achieve, our first DIY non-par savings solution has been received well across channels, leading to a healthy increase in the non-par savings proportion in the last quarter. Our new business margins are 26.3%. Value of new business is Rs. 3,501 crore, implying a 2 year CAGR of 14%. Embedded value stands at Rs 47,468 crore, with an operating return on embedded value of 17.5%. We have delivered a strong profit after tax of Rs. 1,569 crore, implying a YoY increase of 15%, fuelled by 18% increase in profit emergence from back book. Solvency continues to be healthy at 187%.
In addition to business developments, we would like to inform that Mr Deepak Parekh has decided to step down as the Chairman and Non-Executive Director of the Company with effect from close of business hours on April 18, 2024. Being the founder Chairman of our Company, Mr Parekh has been instrumental in guiding and nurturing the Company over the past 24 years. We thank Mr Parekh for the immense contributions made by him and wish him the very best for the future. We are also pleased to inform that the Board has unanimously approved the appointment of Mr Keki M Mistry as the Chairman of the Board. Mr Keki M Mistry has been associated with the Company since December 2000 and is currently a Non-Executive Director on our Board. Under his stewardship, we aim to achieve many more remarkable milestones and emerge stronger and more resilient than ever before. Lastly, we are proud to share that we have been recognized as the Best Organization for Women in 2024 by The Economic Times. This is a testament of the progress we have made in creating a supportive work environment for women and our unwavering belief in the power of diversity, equity and inclusion.”
