Dear Shareholders,
I am pleased to bring you HDFC Life's integrated annual report for
the year 2024-25. The Company's steadfast dedication towards customer-centricity,
innovation, and excellence has helped achieve robust financial results in a volatile
external environment.
During the financial year, while we witnessed geopolitical tensions and
economic uncertainties, the Indian economy remained buoyant for most part of the year and
the Indian equity markets recorded their all-time high. India is currently the 4th largest
economy in the world and is expanding at a rapid pace. In 2025, the Indian economy is
expected to grow at 6.5%. While the country is reasonably protected from extraneous
economic shocks by the rapid recovery of its private consumption and robust public
investment, the financial implications of potential geopolitical escalations remain
uncertain. Last year, the Indian life insurance industry witnessed a roll out of material
regulatory initiatives such as providing greater flexibility to policyholders through
enhanced value on pre-mature exit, articulation of the roadmap to adoption of Risk Based
Capital (RBC) approach and International Financial Reporting Standards (IFRS) for
insurance. These should augur well for the industry's long-term growth prospects.
To fortify our position as the insurer of choice, we must innovate
constantly. We will continue to maintain a balance between growth and profitability. We
have invested in expanding our distribution footprint supported by a broadened agent base
and increased collaboration with new partners, enabling us to capitalise on a variety of
growth opportunities.
I am delighted to announce that the Company has achieved consistent
growth across key metrics, resulting in a strong financial performance in FY 2024-25. We
continue to rank as one of the top three life insurers in both individual and group
segments. Our market share expanded by 70 basis points to an all-time high of 11.1% in the
overall sector, and stood at 15.7% in the private sector, an improvement of 30 bps.
Individual weighted received premium for the year, grew faster than the industry at 17%
and stood at Rs. 13,364 crore. The Profit after Tax stood at Rs. 1,802 crore, an increase
of 15%. Assets under Management (AUM) crossed Rs. 3.36 lakh crore by March 31, 2025, while
the solvency ratio stood at a healthy level of 194% at the end of the year indicating that
the Company is well capitalised and has sufficient headroom to support its growth plans.
As a responsible corporate citizen, we continue to invest for the betterment of society,
our employees and the environment while maintaining the highest standards of corporate
governance. Our CSR initiative, Swabhimaan, focusses on holistic living under key
development areas education & livelihood, healthcare & sanitation, and
environmental sustainability. We have also been recognised amongst the top 100 Great
Places to Work as well as amongst the top 50 Great Places to Work for Women.
As I look to the future, I remain optimistic about the opportunities
that lie ahead. The insurance industry is undergoing rapid transformation, driven by
technological advancements, changing customer expectations, and regulatory reforms. HDFC
Life is well-positioned to capitalise on these trends, leveraging our strong brand, robust
distribution network, and innovative approach to drive sustainable growth and create
long-term value for all stakeholders.
Sincerely,