Strong All-Round Performance: Market Share Up 70 bps, 12.5% APE Growth with VNB growth in line, PAT growth of 14%

Mumbai : The Board of Directors of HDFC Life approved and adopted the reviewed standalone and consolidated financial results for the quarter ended June 30, 2025. The Company outpaced sector growth while maintaining strong performance across all key metrics.

Performance Highlights:

  • Topline Growth: Individual Annualized Premium Equivalent (APE) grew by 12.5% year-on-year, translating into a robust 2-year CAGR of 21%
  • Market Share: Outperformed the overall industry and private sector, resulting in a 70 bps increase in our market share at the overall level to 12.1%, a new milestone for us, and a 40 bps gain within the private sector, taking our share to 17.5%
  • Value of New Business (VNB) for Q1 FY26 stood at ₹ 809 crore, a growth of 12.7% YoY and a 2-year CAGR of 15% with new business margins improving to 25.1%
  • Assets under Management (AUM) stood at ₹ 3,55,897 lakh crore as on 30th June 2025, an increase of 15% YoY
  • Persistency: Persistency metrics remained healthy, with 13th and 61st month persistency at 86% and 64% respectively. 61st month persistency improved across cohorts, supported by stronger retention in long-term savings products
  • Embedded Value (EV) increased to ₹ 58,355 crore, with an operating RoEV of 16.3% on a rolling 12-month basis
  • Profit After Tax (PAT) grew 14% to ₹ 546 crore, driven by a 15% growth in backbook profits
  • Solvency Ratio stood at 192%, comfortably above the regulatory threshold of 150%
  • Employee Focus: certified as India’s Best Workplaces in BFSI 2025 by Great Place to Work and featured amongst top 25 companies

Vibha Padalkar, Managing Director and CEO of HDFC Life, commented: “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, and a 40 bps gain

within the private sector, taking our share to 17.5%. Moreover, over 70% of new customers acquired in Q1 were first-time buyers with HDFC Life, underscoring our customer acquisition strength and deepening presence across Tier 1, 2, and 3 markets.

Contrary to initial expectations, demand for ULIPs remained strong, supported by sustained strength in equity markets. However, our ULIP mix remains lower than the industry and broadly range-bound. We anticipate a gradual shift, rather than a sharp swing in favour of traditional products over the course of the year. Retail protection continued to grow faster than the company average, delivering a robust growth of 19% on a YoY basis and a strong 2-year CAGR of 23%. Retail sum assured grew in double digits and registered a 30% CAGR over two years. We maintained our leadership position in overall sum assured, reinforcing our position as a market leader in protection.

We are also pleased to share that MSCI has upgraded our ESG rating from ‘A’ to ‘AA’, placing us amongst the highest rated insurers in India and the region.

While the external environment remains dynamic, our fundamentals have held strong; anchored in a balanced product mix, a diversified distribution footprint and a consistent focus on innovation, customer centricity and disciplined execution. Our aspiration is to continue to outpace industry growth whilst sustaining our position as a market leader amongst the top 3 in India.”

Key Financial Summary

₹ CroreQ1 FY26Q1 FY25YoY
Key Financial and Actuarial Metrics
Individual APE2,7772,46712.5%
Total APE3,2252,86612.5%
New Business Premium (Indl + Group)7,2726,40013.6%
Renewal Premium (Indl + Group)7,6036,41118.6%
Total Premium14,87512,81116.1%
Assets Under Management3,55,8973,10,24414.7%
Profit After Tax54647814.4%
Indian Embedded Value58,35549,61117.6%
Value of new business80971812.7%
 
 Q1 FY26Q1 FY25
Key Financial Ratios
New Business Margins25.1%25.0%
Operating Return on EV116.3%17.1%
Total Expenses / Total Premium21.9%21.4%
Solvency Ratio192%186%
13M / 61M Persistency86%/64%88%/56%
Individual WRP market share (Overall)12.1%11.4%
Product mix by Indl APE (UL / Non par savings /Annuity/ Protection / Par)38/19/5/6/3238/35/5/6/16
Distribution mix by Indl APE (Banca/ Agency/ Non- bank alliances/ Direct)260/16/15/961/17/13/9

Percentages may not add up due to rounding off effect

  1. ROEV on a rolling 12-month basis, reflecting normalized performance beyond Q1 seasonality
  2. Non-bank Alliances include brokers and other non-bank corporate agents; Select Online/Direct business has been reclassified under Non-bank Alliances