India's HDFC Life posts quarterly profit rise as premium income rises

By Reuters News

BENGALURU, Oct 15 (Reuters) - India's HDFC Life Insurance HDFL.NS posted a 13.6% rise in quarterly profit on Thursday, helped by higher premium income, with analysts saying sales through parent HDFC Bank are picking up, aiding growth.

Profit stood at 5.08 billion rupees ($53.44 million) for the quarter ended September 30, up from 4.47 billion rupees a year earlier.

Over the past year, HDFC Life has grappled with weaker sales through its parent amid heightened regulatory scrutiny of banks' distribution of financial products and intense competition.

The bank channel accounts for around 60% of HDFC Life's retail insurance sales, with the parent comprising a major share.

HDFC Life's net premium income rose nearly 16% to 217.27 billion rupees. Net commissions paid to distributors rose 15.7% to 26.85 billion rupees.

India's insurance sector is set for major reforms as the regulator has proposed overhauling commission rules to cap payouts and link them ​to product complexity, in an effort to curb costs that have ballooned since commission limits were relaxed in 2023.


($1 = 95.0550 Indian rupees)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.