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2. Growth Metrics:
- Individual Annualized Premium Equivalent (APE): 31% YoY growth, indicating a two-year CAGR of 21%.
- Retail Sum Assured: Achieved a 46% growth due to higher sum assured multiples and strong rider attachment.
- Number of Policies: Increased by 22%, showcasing a broadening customer base.
- Profit After Tax: Increased by 15% to Rs 478 crore, with a backbook surplus growth of 18%.
- Assets Under Management (AUM): Surpassed Rs 3 lakh crore, reflecting a 22% growth.
3. Geographic Growth:
- Strong topline growth was recorded across Tier 1, 2, and 3 geographies.
4. Bonus Declaration:
- Declared the highest ever bonus of Rs 3,722 crore to more than 22 lakh participating policyholders.
5. Product Mix:
- Unit-Linked Insurance Plans (ULIPs): 38%
- Non-par savings: 35%
- Participating products: 16%
- Term insurance: 6%
- Annuities: 5%
#### Financial Summary (YoY Comparison):
- Individual APE: Rs 2,467 crore (31% growth)
- Total APE: Rs 2,866 crore (23% growth)
- New Business Premium (Indl + Group): Rs 6,400 crore (9% growth)
- Renewal Premium (Indl + Group): Rs 6,411 crore (10% growth)
- Total Premium: Rs 12,811 crore (10% growth)
- AUM: Rs 3,10,244 crore (22% growth)
- Profit After Tax: Rs 478 crore (15% growth)
- Indian Embedded Value (IEV): Rs 49,611 crore (19% growth)
- Value of New Business (VNB): Rs 718 crore (18% growth)
#### Key Financial Ratios:
- New Business Margins: 25.0% (Q1 FY25) vs. 26.2% (Q1 FY24)
- Operating Return on EV: 15.5% (Q1 FY25) vs. 16.0% (Q1 FY24)
- Total Expenses / Total Premium: 21.4% (Q1 FY25) vs. 19.8% (Q1 FY24)
- Solvency Ratio: 186% (Q1 FY25) vs. 200% (Q1 FY24)
- 13M / 61M Persistency: 88% / 56% (Q1 FY25) vs. 87% / 53% (Q1 FY24)
#### Gross Direct Premium Growth:
- The total premium for Q1 FY25 was Rs 12,811 crore, indicating a 10% growth from Q1 FY24.
#### Peer Group Comparison:
- LIC: Continues to be a major competitor in the industry, with HDFC Life showing significant growth to close gaps in market share and premium collections.
- Private Players: HDFC Life outpaced both the private sector and overall industry growth on a YoY and a two-year CAGR basis.
#### Industry Outlook:
- The life insurance sector in India is expected to grow significantly due to favorable regulatory changes by IRDAI, increased awareness of financial protection, and innovative product offerings.
#### Company’s Future Outlook:
- HDFC Life aims to maintain its growth momentum through innovative product launches, expanding geographic reach, and leveraging technology to enhance customer experience.
- The company is optimistic about the future, expecting to capitalize on the substantial protection gap in India and the growing demand for comprehensive insurance solutions.
### Conclusion
HDFC Life's strong performance in Q1 FY24, marked by significant growth in premiums, market share, and AUM, along with strategic product diversification and geographic expansion, positions it well for continued success in the competitive Indian life insurance market .
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