HDFC Life Q4FY22 Results: Profit comes at Rs 1208 crore; company announces Rs 1.7 apiece final dividend

Private insurer HDFC Life Insurance reported growth during fourth-quarter results for the financial year 2021-22 (Q4FY22). The company reported Profit After Tax (PAT) at Rs 1,208 crore and also proposed a final dividend of Rs 1.70 per share, through its official filing on exchanges on Tuesday. 

The company’s total APE (Annual Premium Equivalent) grew by almost 6 per cent to Rs 3048 crore in Q4FY22 as compared to Rs 2881 crore in the same quarter a year ago. While its Value for New Business (VNB) surged by over 15 per cent to Rs 895 crore from Rs 777 crore year-on-year. 

HDFC Life’s VNB Margin reported a growth of 240 basis points to 29.3 per cent in Q4FY22 from 26.9 per cent in a year ago-quarter. 

Vibha Padalkar, MD & CEO of HDFC Life in her commentary said “We clocked a growth of 16 per cent in individual weighted received premium (WRP) in FY22 with a market share of 14.8 and 9.3 per cent in the private and overall sector respectively, continue to deliver consistent all-round performance and be ranked amongst the top three life insurers in the industry.” 

Despite trying times during the 2-year pandemic, the company’s 2-year CAGR (Compound Annual Growth Rate) of 17 per cent was almost 2 times the industry growth of 9 per cent.  

“Overall protection grew by 24 per cent in terms of APE and 47 per cent in terms of new business premium. This was largely led by a 55% growth in credit life new business premium, on the back of higher disbursements,” HDFC Life said in its results statement. 

On the retirement side, the insurer’s annuity business recorded 24 per cent growth vis-à-vis industry growth of 3 per cent and annuities now contribute over a fifth of our new business premiums, with us almost doubling HDFC Life’s business in the last 3 years.