HDFC Life Insurance, a leading private sector life insurer, has declared its highest-ever bonus of Rs 3,722 crore for participating plans, benefiting nearly 22.23 lakh policyholders.
Participating policies, commonly known as ‘par’ policies, enable policyholders to share in the profits of life insurance companies through bonuses. This reflects a collaborative relationship between the insurer and policyholders.
Of the total bonus amount, Rs 2,798 crore will be disbursed to policies during the current financial year (FY25), either as maturity bonuses or cash bonuses. The remaining bonus will be distributed in the future, upon policy maturity, death, or surrender.
Commenting on this development, Vibha Padalkar, the Managing Director and Chief Executive Officer of HDFC Life, expressed her satisfaction, stating, “We are pleased to announce an increase in bonuses for our esteemed policyholders this year. Life insurance policies are geared towards long-term benefits, and bonuses act as a testament to the loyalty shown by policyholders throughout the policy term. We remain committed to delivering top-notch products and services, ensuring value for all stakeholders.”
HDFC Life recently recorded a year-on-year (Y-o-Y) net profit growth of 14.7%, reaching Rs 411.66 crore for the quarter ending March 31, 2024, up from Rs 358.66 crore in the corresponding period last year. This growth was driven by profit emergence in the back book.
Furthermore, in April 2024, the private life insurer witnessed a 4.31% increase in New Business Premium (NBP), totaling Rs 1,575.17 crore compared to Rs 1,510.08 crore in the same period last year.
