Summary:
HDFC Life Insurance reported strong H1 FY26 results, with Assets Under Management (AUM) surpassing ₹5 trillion and Profit After Tax (PAT) rising 9% YoY to ₹994 crore. The company’s Annualised Premium Equivalent (APE) grew 10% YoY, while market share and persistency metrics showed stability. Despite a 2.76% dip in share price, the company’s performance demonstrates resilience and steady growth across key segments.
Robust Business Growth
HDFC Life demonstrated strong traction across its product portfolio during the half-year ended September 30, 2025:
- Individual New Business (APE): ₹ growth of 10% YoY, with a two-year CAGR of 20%
- Value of New Business (VNB): ₹1,818 crore, up 10% YoY, with a two-year CAGR of 14%
- New Business Margins: 24.5%, consistent with the previous year
This growth underscores HDFC Life’s ability to expand its customer base and strengthen its distribution channels, maintaining competitiveness in the insurance sector.
Market Share Gains
HDFC Life’s market position improved across both overall and private segments:
- Overall Market Share: 11.9%, a gain of 90 basis points
- Private Sector Market Share: 16.6%, up 30 basis points
The company continues to consolidate its position as one of India’s leading private life insurers, reflecting strong product adoption and customer trust.
Milestone AUM and Persistency Metrics
HDFC Life achieved a key milestone, with total AUM, including HDFC Pension Fund Management, crossing ₹5 trillion. Persistency ratios remained stable, highlighting consistent customer retention:
- 13-Month Persistency: 86%
- 61-Month Persistency: 62%
These figures demonstrate long-term customer loyalty and the effectiveness of HDFC Life’s relationship-driven business model.
Financial Performance and Solvency
The company reported solid financial results:
- Profit After Tax (PAT): ₹994 crore, up 9% YoY
- Embedded Value (EV): ₹59,540 crore, with operating RoEV of 15.8%
- Solvency Ratio: 175%, supported by dividend payout, repayment of ₹600 crore subordinated debt, increased protection business, and GST impacts
HDFC Life also plans to raise up to ₹750 crore in subordinated debt in H2 FY26, strengthening its capital structure further.
Management Commentary
Vibha Padalkar, Managing Director & CEO of HDFC Life, said:
“Recent GST revisions are a constructive structural shift aimed at simplifying compliance and improving affordability. We have ensured that full benefits are passed on to our customers. With more attractive product pricing, we expect stronger demand over the medium to long term. H1FY26 concluded broadly in line with expectations, outperforming both the overall industry and the private sector.”
Outlook
HDFC Life’s strong AUM growth, stable persistency, and resilient profitability position the company well for continued expansion in India’s life insurance market. Despite short-term share price fluctuations, the fundamentals indicate steady growth, market leadership, and robust financial health, setting the stage for long-term shareholder value creation.
Disclaimer:
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