HDFC Life Insurance reported a strong performance for the quarter ended June 30, 2025 (Q1FY26), with total Annualized Premium Equivalent (APE) rising 12.5% year-on-year to ₹3,225 crore and the Value of New Business (VNB) margin remaining stable at 25.1%, compared to 25.0% a year ago.
The company’s profit after tax (PAT) increased 14% YoY to ₹546 crore, driven by backbook profit growth. The VNB grew 12.7% YoY to ₹809 crore, and the Indian Embedded Value (EV) rose to ₹58,355 crore, up 17.6% YoY. The operating return on EV (RoEV) stood at 16.3% (rolling 12 months).
On the topline, new business premium (individual + group) rose 13.6% YoY to ₹7,272 crore, while renewal premium grew 18.6% to ₹7,603 crore. This took the total premium income to ₹14,875 crore, up 16.1% YoY. Assets Under Management (AUM) also expanded by 14.7% YoY to ₹3,55,897 crore.
HDFC Life continued to gain market share, which increased 70 basis points YoY to 12.1% at the overall level and 40 basis points to 17.5% in the private sector. The company’s 13th month persistency stood at 86% and the 61st month persistency improved to 64%.
The solvency ratio remained healthy at 192%, well above the regulatory requirement. Notably, over 70% of new customers acquired in the quarter were first-time buyers.
The CEO, Vibha Padalkar, noted that ULIP demand was stronger than expected while retail protection grew faster than the company average. The company also highlighted improved ESG ratings (upgraded by MSCI to ‘AA’) and continued leadership in sum assured.
Disclaimer: The information provided is for informational purposes only and should not be construed as investment, tax, or financial advice. Past performance is not indicative of future results. Investors should conduct their own research or consult a qualified advisor before making investment decisions. Neither the company nor its representatives are responsible for any loss arising from reliance on this information.