HDFC Life Q1FY27: Value of new business (VNB) growth in line with APE growth; 25.0% New Business Margin, healthy growth in protection and annuity

Mumbai: The Board of Directors of HDFC Life approved and adopted the reviewed standalone and consolidated financial results for the quarter ended June 30, 2026.

India remained among the fastest-growing major economies in FY26, supported by resilient domestic demand and continued structural reforms. Growth for FY27 is expected to moderate, largely on account of the ongoing West Asia conflict and its bearing on energy prices. We remain watchful for any material shifts as we go through the year. For the life insurance industry, this backdrop continues to reinforce the long-term, protection-led nature of the business, even as the sector adapts to a meaningful pace of regulatory change.

India’s life insurance opportunity remains significantly underpenetrated relative to its economic size, with a protection gap that continues to widen as household incomes rise. This long runway, combined with an industry that is steadily professionalising its distribution and product design, continues to support the case for sustained, long-term growth.

Vibha Padalkar, MD & CEO, HDFC Life, said: “In Q1FY27, while our proprietary channels led by agency and non-bank alliances channels grew by 17%, faster than the industry, business through our bancassurance channel saw moderate growth this quarter resulting in Individual APE growth of 7%. We saw encouraging improvement in our counter share at partner banks as the quarter progressed, and we expect this to normalise further over the coming months.

Growth during the quarter was underpinned by strong customer acquisition, with the number of policies growing in double digits and ahead of industry. Our product mix also continued to improve, with non-participating savings crossing 25% of individual APE on a run-rate basis. Retail protection grew 42% this quarter, retail sum assured grew 31% and credit protect grew close to 20%. Together, these underscore the strength of our protection franchise and our continued focus on long-term, sustainable value.”

Niraj Shah, ED & CFO, HDFC Life, said: “New Business margin for the quarter was 25.0%; excluding the impact of GST, the margin would have been 25.6% compared to 25.1% in the same period last year. Value of New Business grew 9% to ₹879 crore. We crossed an important milestone during the quarter with Assets Under Management crossing ₹4 lakh crore. Profit after Tax for the quarter grew by 12% year-on-year to ₹611 crore. Excluding GST impact, underlying PAT growth for the quarter stood at 17%.

We stay focused on being a consistent, predictable partner to our customers and distributors as the industry works through a period of regulatory transition. We remain confident in the underlying strength of our franchise as we progress through the year. For FY27, our aspiration remains unchanged: to grow in line with or faster than the industry, and to deliver VNB growth broadly in line with APE growth.”

Performance Highlights:

  • New Business in terms of overall Annualized Premium Equivalent (APE) grew 9% year-on-year, translating into a healthy two-year CAGR of 11%
  • Overall industry market share at 11.2%
  • Value of New Business (VNB) grew in line with APE; VNB for Q1FY27 stood at ₹ 879 crore, with margins of 25.0%; New business margins for Q1FY27, excluding impact of GST would have been 25.6%
  • Retail protection registered robust growth of 42% during Q1FY27; Retail protection mix expanded by nearly 200 basis points year-on-year to 8%, and including riders, protection now contributes nearly 11% of our retail business
  • Retail sum assured grew by 31% 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 crossed ₹5.7 lakh crore
  • Persistency ratios – 13-month and 61-month persistency at 84% and 65% respectively. These trends reflect the underlying product and tier mix. Renewal collections grew 19% year-on-year
  • Embedded Value (EV) stood at ₹ 65,860 crore, with rolling operating RoEV of 14.7%
  • Profit after tax grew by 12% to ₹611 crore, for the period Q1FY27. Excluding GST impact, underlying PAT growth stood at 17%
  • Solvency Ratio was healthy at 185%

Key Financial Summary

₹ CroreQ1 FY27Q1 FY26YoY
Key Financial and Actuarial Metrics
Individual APE2,9692,7777%
Total APE3,5153,2259%
New Business Premium (Indl + Group)8,1437,27212%
Renewal Premium (Indl + Group)9,0237,60319%
Total Premium17,16614,87515%
Assets Under Management4,00,8703,55,89713%
Profit After Tax161154612%
Indian Embedded Value65,86058,35513%
Value of new business28798099%
 Q1 FY27Q1 FY26
Key Financial Ratios
New Business Margins225.0%25.1%
Operating Return on EV314.7%16.3%
Total Expenses / Total Premium22.6%21.9%
Solvency Ratio185%192%
13M / 61M Persistency84%/65%86%/64%
Individual WRP market share (Overall)11.2%12.1%
Product mix by Indl APE (UL / Non par savings /Annuity/ Protection / Par)44/22/11/8/1538/19/5/6/32
Distribution mix by Indl APE (Banca/ Agency/ Non-bank alliances/ Direct)57/18/15/1060/16/15/9

Percentages may not add up due to rounding off effect

  1. PAT growth excluding GST impact is 17% for Q1FY27
  2. Excluding the impact of GST, VNB margins stood at 25.6% and VNB grew by 11% in Q1FY27
  3. On rolling 12-month basis