Halfpenny, who has already won RBS 6 Nations Player of the Tournament and British and Irish Lions Player of the Series in 2013, followed in the footsteps of New Zealand duo Richie McCaw and Dan Carter and France's Thierry Dusautoir in taking the title.
In a ceremony which also saw Wales trio Graham Price, Gareth Edwards and Gerald Davies all named in the Legends XV, Halfpenny said he was honoured to receive such an accolade.
"It is a huge honour to receive this award and I feel extremely privileged to have my name alongside the previous winners," he said.
"The evening celebrated its 60th Anniversary and it was an honour to share the stage with so many legends of the game.
"I'm delighted to win the award and it meant a lot to have my family there to witness it. I have played in some great teams and it was fantastic to be part of last season's Six Nations and British and Irish Lions success."