Mumbai: HDFC Life Insurance on Wednesday declared 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 distribute a portion of their profits to policyholders in the form of bonuses. These plans enable policyholders to share in the company's profits, indicating a mutual partnership between the insurer and the policyholders.

The private sector life insurer reported a 14.7 percent year-on-year (Y-o-Y) rise in net profit to Rs 411.66 crore for the fourth quarter of FY24, from Rs 358.66 crore on the back of profit emergence in the back book.

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.”

In April 2024, the private life insurer recorded a 4.31 percent increase in New Business Premium (NBP), rising to Rs 1,575.17 crore from Rs 1,510.08 crore in the same period the previous year.