HDFC Life Insurance Company Ltd posted a net profit of ₹1,360 crore for FY23, an increase of 13 per cent on year, led by strong 27 per cent growth in the back book surplus, and despite the increased new business strain arising from higher growth in Q4.

Value of new business (VNB) grew 37 per cent YoY to ₹3,674 crore in FY23. VNB margin for the year was 27.6 per cent, with the insurer achieving margin neutrality post the merger of Exide Life.

Total APE (annualised premium equivalent) rose 37 per cent YoY to ₹13,336 crore in FY23, led by 40 per cent growth in individual APE. Annuity APE grew 59 per cent owing to a pickup in our regular premium annuity product - Systematic Retirement Plan.

Protection APE was up 20 per cent, with the share of protection in new business premium (NBP) rising 29 per cent in FY23 from 24 per cent last year. Retail protection trends remain encouraging with sequential growth being over 50 per cent and YoY growth being over 40 per cent in Q4, the company said in a statement.

The market share of the company among private players improved to 16.5 per cent, on an individual weighted received premium (WRP) basis, an expansion of 40 bps. As a share of the overall industry, the market share was 10.8 per cent, an expansion of 70 bps on year.

RBI has permitted HDFC Bank or HDFC Ltd to increase their shareholding in HDFC Life to more than 50% prior to the effective date, thus clearing any uncertainty around HDFC Bank’s eventual shareholding in us. We look forward to collaborating with our parent to be, towards creating value for all stakeholders,” MD and CEO Vibha Padalkar said.