Private sector life insurer HDFC Life Insurance on Wednesday announced its highest-ever bonus of Rs 3,722 crore on participating plans to nearly 22.23 lakh policyholders.

In participating or ‘par’ policies, life insurance companies share the benefit of profit in the form of bonuses with policyholders. These plans allow policyholders to share the company’s profits, reflecting a mutual partnership between the insurer and policyholders.

Out of the total bonus amount, Rs 2,798 crore will be disbursed to policies in the current financial year (FY25), either in the form of maturity bonuses or cash bonuses. Whereas, the remaining bonus will be payable in the future upon policy maturity, death or surrender.

Speaking on the development, Vibha Padalkar, managing director and chief executive officer of HDFC Life, said, “We are delighted to announce an increase in the bonuses for our valued policyholders this year. Life insurance policies are designed for the long term, and bonuses serve as a reward for the loyalty of policyholders throughout the policy term. We are committed to providing the best products and services to our policyholders, ensuring value for all our stakeholders.”

HDFC Life had posted a 14.7 per cent year-on-year (Y-o-Y) growth in net profit to Rs 411.66 crore for the quarter ended March 31, 2024, from Rs 358.66 crore in the corresponding year-ago period, driven by profit emergence in the back book.

In April 2024, the private life insurer clocked a 4.31 per cent growth in New Business Premium (NBP) to Rs 1,575.17 crore from Rs 1,510.08 crore in the year-ago period.

First Published: May 15 2024 | 7:06 PM IST