Tag Insurance Industry

HDFC Life Insurance
HDFC Life Q4 Results: ₹477 Cr Profit, 16% Growth and Strategic Insights

Business and Industry Overview:  

HDFC Life Insurance Company was founded in 2000. It is a joint venture between HDFC and Standard Life. It is one of the largest private life insurance companies in India. The company sells many types of insurance plans. These include protection, pension, savings, and investment plans. HDFC Life is the second-largest private life insurer in India. It holds a market share of 15.3% among private companies. 

HDFC Life has more than 600 branches in India. It has a network of 2.4 lakh agents. The company works with banks, brokers, and online platforms to sell insurance. HDFC Life has covered over 6.6 crore lives. It is growing fast in smaller cities. These cities contribute 65% of the company’s revenue. 

The company aims for 18%-20% growth in the next year. In November 2024, there was a cyberattack. Customer data was stolen in the attack. The company is investigating the incident. In January 2025, HDFC Life received a GST order of ₹270 crore. Despite these challenges, the company is focused on growth. It continues to serve customers through many different channels. 

Latest Stock News: 

HDFC Life Insurance Company’s stock is currently priced at ₹717. Recently, the company announced its results for the fourth quarter of FY25. In this quarter, HDFC Life reported a net profit of ₹477 crore, which is a 16% increase compared to ₹412 crore in the same quarter of the previous year. This shows that the company is making more money and doing well in the market. The company also saw a 16% rise in its premium income. Premium income refers to the money the company earns from selling insurance policies. In this quarter, HDFC Life earned ₹23,766 crore in premium income, up from ₹20,488 crore last year. This increase means that more people are buying insurance from the company, which is a positive sign for its growth. HDFC Life also announced a dividend of ₹2.10 per share for its shareholders. This means that if someone owns shares in the company, they will get ₹2.10 for each share they own as a part of the company’s profit. Offering a dividend is a way for companies to share their profits with their investors. However, the company faced a challenge in November 2024 when it was hit by a cyberattack. During the attack, sensitive customer data was stolen. The company has launched an investigation to find out how the attack happened, understand the damage, and ensure that it doesn’t happen again. Even though this was a serious issue, the company is working hard to resolve it and prevent future problems. Despite the cyberattack, analysts are still positive about HDFC Life’s future. For example, Motilal Oswal, a well-known financial analyst, has given the stock a “Buy” recommendation. They believe that the stock price will go up and set a target price of ₹850. This means that analysts believe the company’s performance will improve, and the stock will become more valuable in the coming months. Overall, HDFC Life has been doing well financially, and even though it faced a cyberattack, the company is working to resolve the issue. The company’s growth in premium income, the positive outlook from analysts, and the dividend for shareholders all suggest that HDFC Life is a strong company with a good future ahead. 

Business Segments: 

  1. Individual Insurance: 
    HDFC Life offers several types of insurance plans for individuals: 
  • Protection Plans: These plans provide financial help to the family if the policyholder dies. It includes term insurance. 
  • Pension Plans: These help people save money for retirement and provide regular income after they retire. 
  • Savings & Investment Plans: These plans combine saving money and getting insurance at the same time. 
  • ULIPs (Unit Linked Insurance Plans): In these plans, part of the money goes into investments like stocks or bonds, while the person is also covered by insurance. 
     
  1. Group Insurance: 
    HDFC Life also provides insurance for groups, like companies or organizations that want to cover their employees. The group plans include: 
  • Group Term Life Insurance: This gives life coverage for a group of employees. 
  • Group Health Insurance: This covers medical expenses for a group of employees. 
  • Group Credit Life Insurance: This covers people who have loans. If the borrower dies, the loan is paid off. 
  1. Other Services: 
  • Annuities: Annuities give regular payments to people, usually after they retire. 
  • Riders: These are extra benefits that can be added to a basic insurance plan, like protection for accidents or critical illnesses. 

In the first half of FY25, the company’s new business came from these areas: 

  • ULIPs made up 37% of the new business. 
  • Non-Participating Savings Plans were 35%. 
  • Participating Savings Plans (Par) were 18%. 
  • Term Insurance made up 6%. 
  • Annuity Plans made up 5%.
     

Subsidiary information: 

HDFC Life Insurance Company has some subsidiaries. These companies help HDFC Life in different ways: 

  1. HDFC Pension Management Company Limited: This company started in 2012. It manages pension funds under India’s National Pension System (NPS). As of March 31, 2023, it had 15.2 lakh customers. It managed ₹45,397 crore in assets, which grew by 60% from the previous year. 
  1. HDFC International Life and Re Company Limited: This company started in 2016. It is based in Dubai, UAE, and is regulated by the Dubai Financial Services Authority (DFSA). It provides reinsurance for life insurance policies and group credit life insurance. It won the “Emerging Company of the Year” award from ET Ascent. 

Q4 Highlights: 

  • Net Profit: The company made ₹477 crore in profit, which is 16% higher than last year’s ₹412 crore. 
  • Net Premium Income: The total premium income grew by 16%, reaching ₹23,766 crore, compared to ₹20,488 crore last year. 
  • Value of New Business (VNB): VNB grew by 11.5%, reaching ₹1,376 crore, up from ₹1,234 crore last year. 
  • Dividend: The company announced a final dividend of ₹2.10 per share for FY25. 

Financial Summary: 

Amount in ₹ Crore Q4 FY24 Q4 FY25 FY23 FY24 
Revenue 28,041.00 24,191.00 101,482 96,922 
Expenses 27,766.00 23,814 100,951 96,095 
EBITDA 275 377 531.00 826.00 
OPM 1% 2% 1% 1% 
Other Income 174 124 525 463 
Net Profit 412.00 475.00 1,574 1,811 
NPM 1.47 1.96 1.55 1.87 
EPS 1.91 2.21 7.32 8.41 
LIC Ltd Q3 FY25 Results
LIC Ltd Q3 FY25 Results: Strong Net Profit Surges 17% YoY to ₹11,057 Cr

LIC Ltd: Overview 

Life Insurance Corporation of India (LIC) is the largest life insurer in India, commanding a dominant position in the market. Established in 1956 by the Government of India through the nationalization of over 245 private insurers, LIC has played a pivotal role in shaping the Indian life insurance landscape. With an extensive distribution network of more than 1.4 million agents, numerous bancassurance partnerships, and a growing digital presence, LIC caters to millions of policyholders across urban and rural India. As of FY 2024, LIC manages assets worth over ₹45 lakh crore, making it one of the largest institutional investors in the country. Its business model revolves around a diversified product portfolio that includes individual life insurance, pension plans, annuities, ULIPs, health insurance, and group insurance schemes. The company also offers microinsurance products to serve the financially weaker sections of society. LIC’s AUM-to-GDP ratio is among the highest in the world, underscoring its importance in India’s financial system. The Indian life insurance sector is expected to experience robust growth, driven by rising disposable incomes, increasing financial awareness, and favourable regulatory initiatives. Currently, India’s life insurance penetration stands at approximately 3.2% of GDP, significantly lower than the global average, highlighting substantial growth potential. The post-pandemic era has reinforced the importance of life insurance as a financial protection tool, leading to higher demand for pure protection plans (term insurance), health-linked insurance, and retirement products. Additionally, the government’s initiatives, such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and tax incentives for insurance products, have boosted policy uptake across different income groups. 

Latest Stock News 

LIC has demonstrated strong financial performance, with the yield on investment (policyholders’ fund) recorded at 8.82% for the first nine months (9M) of FY25, compared to 9.14% in 9M FY24. A significant highlight of LIC’s financial trajectory is the surge in Indian Embedded Value (IEV), which increased by ₹159,111 crore from September 2023 to September 2024, reflecting a remarkable growth trajectory and strengthening LIC’s valuation in the industry. The company continues to dominate the life insurance sector, backed by its extensive agency network, which contributes 47.40% of the industry’s total agency force. LIC’s loyal and well-trained agency network is a blend of young and experienced professionals, ensuring widespread customer outreach. In 9M FY25, a total of 3,68,150 agents were trained, with a significant 77.40% of them falling within the 18-40 years age group, underscoring LIC’s focus on youth recruitment to drive future growth. Additionally, the launch of LIC’s Bima Sakhi Yojana by the Hon’ble Prime Minister on December 9, 2024, marked a major initiative to empower women in the insurance sector. Out of the total 7.45 lakh women agents in India, LIC holds a 42.67% share, reflecting its leadership in gender-inclusive employment. LIC has also maintained its exemplary claims management system, settling total death claims worth ₹17,588 crore in 9M FY25, up from ₹16,288 crore in 9M FY24. The death claim settlement ratio has improved to 98.66% in 9M FY25, compared to 98.46% in 9M FY24, reinforcing LIC’s commitment to efficient and reliable claim settlements. 

Business Segments

  • Individual Life Insurance: LIC offers a broad range of individual life insurance products, including term insurance, endowment plans, whole-life policies, ULIPs, and money-back policies. These plans provide a combination of risk coverage and savings, catering to different financial needs. Popular policies like Jeevan Anand, Jeevan Umang, and Tech Term continue to be preferred choices among policyholders. 
  • Group Insurance and Pension Plans: LIC dominates the group insurance segment, providing group term insurance, gratuity schemes, and superannuation plans to corporate and government organizations. Its pension and annuity products, such as Jeevan Akshay and Jeevan Shanti, help retirees secure a stable post-retirement income. The growing aging population and lack of adequate pension coverage in India make this segment a key growth driver for LIC. 
  • Health Insurance: LIC’s health insurance segment includes policies like LIC Jeevan Arogya, which offers hospitalization benefits, critical illness cover, and family protection. With rising medical inflation and healthcare costs, LIC is expected to expand its health insurance offerings further. 
  • Microinsurance and Rural Policies: To ensure financial inclusion, LIC has introduced low-premium, high-coverage insurance plans targeted at low-income groups and rural populations. Policies like LIC Bhagya Lakshmi and LIC New Jeevan Mangal provide affordable life coverage, supporting the government’s vision of universal financial protection. 

Subsidiary Information

  • LIC Housing Finance Ltd. (LIC HFL): LIC HFL is one of India’s leading housing finance companies, providing home loans, project financing, and loans against property. With a strong nationwide presence, the subsidiary plays a vital role in India’s real estate financing sector. LIC’s association with the brand enhances customer trust, making LIC HFL a preferred choice for homebuyers. 
  • LIC Mutual Fund Asset Management Ltd: LIC’s mutual fund arm offers diverse investment solutions, including equity, debt, hybrid, and tax-saving funds (ELSS). The subsidiary capitalizes on LIC’s brand recognition to attract retail and institutional investors looking for long-term wealth creation opportunities. 
  • LIC Pension Fund Ltd: LIC Pension Fund manages National Pension System (NPS) investments, serving government employees and private sector participants. With India’s increasing focus on retirement planning, this subsidiary is expected to play a crucial role in the country’s pension market. 
  • LIC Cards Services Ltd: A relatively newer subsidiary, LIC Cards Services Ltd. has entered the credit card market in partnership with IDBI Bank, offering insurance-linked benefits and targeting LIC’s existing policyholders to expand its customer base. 
  • LIC International: LIC has expanded internationally through joint ventures in Bangladesh, Nepal, Sri Lanka, and the UAE, offering customized life insurance solutions to the South Asian market. These subsidiaries contribute to LIC’s global growth strategy and revenue diversification. 

Q3 FY25 Earnings 

  • Revenue of ₹203751 crore in Q3 FY25 down by 4.8% YoY from ₹214054 crore in Q3 FY24.  
  • EBITDA of ₹11395 crore in this quarter at a margin of 6% compared to 4% in Q3 FY24. 
  • Profit of ₹11009 crore in this quarter compared to a ₹9434 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 214054 203751 784628 845966 
Expenses 204815 192356 750420 813188 
EBITDA 9239 11395 34207 32779 
OPM 4% 6% 4% 4% 
Other Income 206 818 7800 14829 
Net Profit 9434 11009 35997 40916 
NPM 4.4% 5.4% 4.6% 4.8% 
EPS 14.9 17.4 56.9 64.5