During Monday’s trading session, the shares of a leading long-term life insurance solutions provider in India surged nearly 1.3 percent to Rs. 695.45 on BSE, after ICICI Lombard bought a 0.19 percent stake in the company for Rs. 233 crores through cash consideration.
With a market cap of Rs. 1.47 lakh crores, at 01:55 p.m., the shares of HDFC Life Insurance Company Limited were trading in the green at Rs. 688.55, up by 0.24 percent, as against its previous closing price of Rs. 686.9.
What’s the news:
According to the regulatory filings with the stock exchanges, ICICI Lombard General Insurance Company Limited bought a 0.19 percent stake in HDFC Life Insurance Company Limited, valued at Rs. 233 crores.
This acquisition of shares by the private general insurer ICICI Lombard was carried out in the normal course of the company’s business on 22nd November during market hours and was made through cash consideration.
Financials:
HDFC Life Insurance Company reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 23.2 percent, rising from Rs. 23,142 crores in Q2 FY24 to Rs. 28,497 crores in Q2 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 378 crores to Rs. 435 crores, representing a growth of around 15 percent YoY.
Key Financial Ratios:
In terms of key financial metrics, HDFC Life Insurance Company has a Return on Equity (RoE) of 11.4 percent and a return on capital employed (RoCE) of 6.61 percent. Additionally, the company’s debt-to-equity ratio stands at 0.06.
Stock Performance:
The stock has delivered positive returns of nearly 2.2 percent in one year, as well as around 22 percent returns in the last six months. So far in 2024, the shares of HDFC Life Insurance Company have given positive returns of about 6 percent.
About the company:
HDFC Life Insurance Company Limited was formed as a joint venture between Housing Development Finance Corporation Limited (HDFC Limited) and Abrdn plc. Pursuant to a scheme of amalgamation of erstwhile HDFC Limited with HDFC Bank Limited on 1st July 2023, HDFC Bank Limited has become the Holding and Promoter Company of HDFC Life.
Incorporated in 2000, HDFC Life Insurance Company offers a range of individual and group insurance solutions that meet various customer needs such as Protection, Pension, Savings, Investment, Annuity and Health.
Written by Shivani Singh
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