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India's HDFC Life Insurance Company reported a 15.5% rise in second-quarter profit on Friday as premium collections gained despite increased taxation on high-value life insurance.

The Mumbai-based insurer's profit after tax rose to 3.77 billion rupees ($45.30 million) for the quarter ended Sept. 30, from 3.26 billion rupees a year ago, it said in an exchange filing.

Its total annualized premium equivalent, a closely-watched gauge of insurance sales, rose 9% during the first half of the fiscal year 2023-24.

The insurer posted a 10% growth in individual weighted received premium compared with 8% growth for overall industry for the half year ended Sept. 30.

Shares of HDFC Life were up 0.11% to 625.4 rupees at 02:40 p.m. IST. The stock fell 2.1% during the September quarter.

Analysts believe the insurer's growth is backed by product innovation, a diversified distribution channel and strong support from its parent, HDFC Bank.

The company's value of new business, which measures expected profit from new premiums, grew 10% during the fiscal first half.

Analysts at Jefferies said that the sales partnership with its parent has aided growth in premiums.

The partnership contributed 65% to HDFC Life's distribution mix for the first half of the financial year.

The rise in quarterly profit was despite the government's plan to withdraw tax incentives on high-value life insurance from this fiscal.

Still, the company saw a 12.6% rise in net premium income in the September quarter.

"Despite the recent budget changes that were perceived to be unfavourable for the sector, the life insurance industry has demonstrated remarkable resilience," HDFC Life's CEO Vibha Padalkar said in a statement.

Brokerage Motilal Oswal said that among life insurance companies, HDFC Life and its peer SBI Life outpaced other private players for a third month in September.