HDFC Life Q2 Results: Life insurer posts 15% rise in net profit; shares slump

HDFC Life Insurance Company (HDFCLIFE) Q2 FY25 Results: HDFC Life Insurance Company, a Mumbai-headquartered life insurer, on Tuesday reported a consolidated net profit of Rs 435.2 crore for the July-September period, marking an increase of 15.1 per cent over the corresponding period a year ago. The life insurance stock fell after the earnings announcement amid overall weakness on Dalal Street. 

The company's net premium income grew 12.3 per cent to Rs 16,613.7 crore on a year-on-year basis, according to a regulatory filing.

Gross income from first-, second- and third-year premiums grew 27 per cent to Rs 3,259.9 crore, 12.7 per cent to Rs 8,831.1 crore and 6.8 per cent to Rs 4,843 crore, respectively. 

The company clocked a 56.1 per cent year-on-year jump in its net commission to Rs 1,854.6 crore, according to the filing.  

HDFC Life shares slipped into negative territory after the earnings announcement, falling by as much as Rs 21.7, or 2.9 per cent, to Rs 719 apiece on BSE.  

The HDFC Life Company stock declined by Rs 26.3, or 3.5 per cent, for the day to end at Rs 714.4 apiece, after falling as much as 4.0 per cent to Rs 711 during the session. 

The insurer's solvency ratio—which gauges a company's ability to meet its financial obligations over the long term—came in at 181 per cent for the quarter ended September 30, 2024, as against 186 per cent for the previous three months, and 194 per cent for the July-September 2023 period. 

Earnings season gathers steam

Last week, Tata Consultancy Services (TCS) kicked off the earnings season on a muted note, with a 1.1 per cent quarter-on-quarter decline in its July-September net profit that fell short of analysts' expectations. TCS emerged the first Nifty50 company to report its results for the September quarter. Read more on TCS Q2 FY25 earnings