HDFC Life H1FY27: Q2 individual weighted received premium (WRP) growth ahead of private industry; VNB grows 12%, ahead of APE; 24.7% New Business Margin
Mumbai: The Board of Directors of HDFC Life approved and adopted the reviewed standalone and consolidated financial results for the half year ended September 30, 2026.
Vibha Padalkar, MD & CEO, HDFC Life, said: “On macroeconomic front, Reserve Bank of India raised its FY2027 growth projection to 7.1% from 6.7%, reflecting continued resilience in domestic economic activity, while the fiscal position remains well managed. At the same time, the RBI raised the policy repo rate by 25 basis points to 5.50% and moved to a stance of calibrated tightening, given elevated energy prices and a below-normal monsoon, which remain the key risks to inflation. Broadly, we expect macro conditions to remain stable, which in turn should support steady growth for the life insurance industry
In Q2, individual WRP grew 11%, ahead of the private industry at 10%. This took our H1 growth to 9%, with market share improving to 16.2% from 16.1% in Q1. Overall APE grew faster, at 13% in Q2 and 11% in H1. The number of individual policies grew 9% in H1, ahead of the industry. We expect to sustain this momentum and grow in line with the industry in FY27.
On the regulatory front, IRDAI has released consultation papers on the economics of insurance distribution, which propose significant changes for the industry. The regulator has encouraged industry participants to share their feedback backed by data and keeping policyholder interest at the centre of the conversations”
Niraj Shah, ED & CFO, HDFC Life, said: “Value of new business for H1 was ₹2,037 crore, a growth of about 12.1%, ahead of APE growth. VNB growth for Q2 was 14.8%. Embedded Value stood at Rs 66,461 crore and rolling 12-month embedded value operating profit was 14.9%. Profit after tax for H1 was ₹1,119 crore, a growth of about 12.7%. Assets under management stood at ₹4.1 trillion, up 13.8% year-on-year.
We remain confident in the sector’s long-term growth trajectory and are well positioned to capture emerging opportunities with discipline and focus.”
Performance Highlights:
- New Business in terms of overall Annualized Premium Equivalent (APE) grew 11% year-on-year, as well as on two-year CAGR basis
- Overall industry market share at 11.5%
- Value of New Business (VNB) grew ahead of APE; VNB for H1FY27 stood at ₹ 2,037 crore, with margins of 24.7%
- Retail protection registered robust growth of 33% during H1FY27; Its share of individual APE rose to 8% from about 7% last year. Rider attachment continues to be healthy, and protection and riders together now account for 11% of individual APE
- Retail sum assured grew by 21% year-on-year, and we ranked amongst top two players, reinforcing the quality of our business mix
- Assets under Management (AUM) including that of our wholly owned subsidiary HDFC Pension Fund Management reached ₹5.9 lakh crore
- Persistency ratios – 13-month and 61-month persistency at 83% and 66% respectively. These trends reflect the underlying product and tier mix. Renewal collections grew 14% year-on-year
- Embedded Value (EV) stood at ₹ 66,461 crore, with rolling 12-month operating RoEV of 14.9%
- Profit after tax grew by 13% to ₹1,119 crore, for the period H1FY27
- Solvency Ratio was healthy at 180%
Key Financial Summary
| ₹ Crore | H1 FY27 | H1 FY26 | YoY | |
| Key Financial and Actuarial Metrics | ||||
| Individual APE | 7,080 | 6,471 | 9% | |
| Total APE | 8,245 | 7,413 | 11% | |
| New Business Premium (Indl + Group) | 19,126 | 16,222 | 18% | |
| Renewal Premium (Indl + Group) | 20,443 | 17,940 | 14% | |
| Total Premium | 39,569 | 34,162 | 16% | |
| Assets Under Management | 4,09,673 | 3,59,999 | 14% | |
| Profit After Tax | 1,119 | 994 | 13% | |
| Indian Embedded Value | 66,461 | 59,540 | 12% | |
| Value of new business | 2,037 | 1,818 | 12% | |
| H1 FY27 | H1 FY26 | |||
| Key Financial Ratios | ||||
| New Business Margins | 24.7% | 24.5% | ||
| Operating Return on EV1 | 14.9% | 15.8% | ||
| Total Expenses / Total Premium | 22.3% | 21.6% | ||
| Solvency Ratio | 180% | 175% | ||
| 13M / 61M Persistency | 83%/66% | 86%/62% |
| Individual WRP market share (Overall) | 11.5% | 11.9% |
| Product mix by Indl APE (UL / Non par savings /Annuity/ Protection / Par)2 | 45/22/12/8/13 | 42/18/4/7/29 |
| Distribution mix by Indl APE (Banca/ Agency/ Non-bank alliances/ Direct)2 | 58/18/15/9 | 59/18/14/9 |
Percentages may not add up due to rounding off effect
1. On rolling 12-month basis
2. Percentage mix; Percentages may not add upto 100% due to rounding off effect
Leave a Reply