HDFC Life reported a 14 percent jump in its net profit to Rs 546 crore for the June quarter of fiscal year 2026. The company had reported the net profit at Rs 478 crore in the same quarter of the previous fiscal.
The total Annual Premium Equivalent (APE) was lower than the expectations which stood at Rs 3,225 crore, against Moneycontrol estimate of Rs 3,273 crore. The retail APE stood at Rs 2,777 crore.
Individual Annualized Premium Equivalent (APE) grew by 12.5 percent year-on-year.
The Value of New Business (VNB) stood at Rs 809 crore, against Moneycontrol estimate of Rs 834 crore.
The VNB saw a growth of 12.7 percent YoY and a 2-year CAGR of 15 percent with new business margins improving to 25.1 percent.
Vibha Padalkar, Managing Director and CEO of HDFC Life, said "Q1 FY26 began on a strong note, with healthy growth across topline, value of new business and steady margins. Individual Annualized Premium Equivalent (APE) grew by 12.5% year-on-year, translating into a robust 2-year CAGR of 21%. We outperformed both the overall industry and the private sector, resulting in a 70 bps increase in our market share at the overall level to 12.1%, a new milestone for us."
The company’s solvency ratio stood at 192 percent, well above the regulatory requirement of 150 percent.
Gross premium income for the quarter stood at Rs 1,487 crore from first-year premiums, Rs 760 crore from renewal premiums, and Rs 472 crore from single premiums, taking the total gross premium to over Rs 2,680 crore. Net premium income rose to Rs 1,446 crore.
Investment income for policyholders saw a sharp spike to Rs 1,459 crore in Q1 FY26 compared to just Rs 1.8 crore in the previous quarter (Q4 FY25).
The net yield on policyholder funds, particularly in unit-linked products, rebounded sharply with 9.5 percent returns (including unrealised gains), compared to -4.5 percent in the March quarter.
Operating metrics showed mixed trends.
The company’s 13th month persistency ratio, an indicator of policy renewal, declined to 82.7 percent from 87.3 percent in the same period last year on premium basis, reflecting some retention pressure.
However, persistency in the 25th and 49th months showed improvement year-on-year. The conservation ratio for participating and non-par products remained steady above 85 percent, indicating strong policyholder stickiness.
Total benefits paid stood at Rs 867.9 crore, while the change in actuarial liability was Rs 1,701 crore, both reflecting higher scale of business.
Operating expenses for the insurance business rose to Rs 150.9 crore, while net commissions paid were Rs 174.9 crore, indicating continued investment in distribution.
On the shareholder side, investment income came in at Rs 32 crore and profit before tax was Rs 56 crore.
Net worth increased to Rs 1,701 crore, supported by Rs 1,416 crore in reserves.
Shares of HDFC Life settled nearly 1 percent lower at Rs 757.9 per share on the NSE, down 0.9 percent.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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