HDFC Life Q3 FY26: PAT up 7% yoy, even as margins take a mild hit

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• HDFC Life Q3 FY26 PAT up 7 percent YoY to Rs 1,414 crore despite margin pressure
• Total premium income rose 13 percent YoY to Rs 52,965 crore in Q3 FY26
• Assets under management grew 15 percent YoY to Rs 5.3 trillion

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HDFC Life Insurance on January 15 reported a 7 percent year-on-year increase in profit after tax (PAT) to Rs 1,414 crore in Q3 FY26, even as margins saw mild pressure.

Individual annualised premium equivalent (APE) rose 11 percent year on year to Rs 9,988 crore, while total APE grew at a similar pace to Rs 11,387 crore.

New business premium (individual and group) increased 10 percent year on year to Rs 24,550 crore, with the number of individual policies sold showing double-digit growth during the quarter.

Renewal premium climbed 15 percent year on year to Rs 28,415 crore, lifting total premium income by 13 percent year on year to Rs 52,965 crore.

The retail protection segment continued to outperform, with retail protection APE surging 70 percent year on year in Q3, translating into 42 percent growth for the nine-month period.

Retail sum assured rose 55 percent year on year in Q3 and 33 percent over 9M FY26.

Value of New Business (VNB) stood at Rs 2,773 crore for 9M FY26, up 7 percent year on year, while new business margins moderated to 24.4 percent from 25.1 percent a year ago.

Excluding these one-offs, underlying VNB growth was in the low double digits, the company said.

Assets under management (AUM) increased 15 percent year on year to Rs 5.3 trillion, including assets managed by HDFC Pension Fund Management.

Embedded Value rose 16 percent year on year to Rs 61,565 crore, with an operating return on embedded value (RoEV) of 15.6 percent on a rolling 12-month basis.

The solvency ratio stood at 180 percent, supported by Rs 749 crore of subordinated debt raised during the quarter, while 13-month persistency remained stable at 85 percent and 61-month persistency improved to 63 percent.

Individual WRP market share edged up to 10.9 percent from 10.8 percent a year ago.