"Core of insurance lies in long-term security"

Vibha Padalkar, MD & CEO of HDFC Life, on the insurance provider's performance, surrender charges, and future innovations 

- TEENA JAIN KAUSHAL

WITH A WEALTH of experience and a visionary approach, Vibha Padalkar, MD & CEO of HDFC Life, has been instrumental in shaping the insurer’s success amid an evolving market landscape. In an interaction with Business Today, she talks about strategic insights, innovative initiatives, and reflects on HDFC Life’s performance in FY24. Edited excerpts:

How has HDFC Life performed in FY24? 

Despite changes in the Budget, we delivered a healthy growth of 20% in Q4 after adjusting for the one-off business of ? 1,000 crore in March 2023. We achieved our aspiration of double-digit growth for a full year by clocking 11% growth in FY24 on a normalised basis. We achieved individual Annual Premium Equivalent (APE) growth of 1% on an unadjusted basis. Growth momentum continued across ticket sizes of up to ? 5 lakh with robust growth of 19% for the full year. Tier II and III markets recorded growth of 13%. The number of policies for the year has increased by 11%. 

The two subsidiaries are doing well. The pension subsidiary, which is wholly-owned, has crossed ₹75,000 crore of assets under management (AUM), and our Dubai subsidiary (HDFC International Life & Re) was the first one to set up its branch in GIFT City, and two products have already been launched. One is a dollardenominated student savings plan, and the other one is a dollar-denominated health plan.

Why were there margin pressures this year?