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HDFC Life rises as Q1 PAT climbs 14% YoY to Rs 546 cr

16-Jul-25 10:29 Hrs IST

Net income from investments added 3.33% to Rs 14,594.99 crore in Q1 FY26 as compared to Rs 14,124.41 crore posted in same quarter last year.

Profit before tax (PBT) stood at Rs 560.65 crore in the June 2025 quarter, registering a growth of 12.69% on YoY basis.

Assets under management (AUM) jumped 15% YoY to Rs 3,558.97 crore as on 30 June 2025.

The value of new business (VNB) for Q1 FY26 stood at Rs 809 crore, a growth of 12.7% YoY and a 2-year CAGR of 15% with new business margins improving to 25.1%.

The company's Indian embedded value (IEV) increased 17.6% YoY to Rs 58,355 crore, with an operating RoEV of 16.3% on a rolling 12-month basis

The company's individual annualized premium equivalent (APE) grew by 12.5% year-on-year to Rs 3,225 crore, resulting in a strong 2-year CAGR of 21%.

The life insurer's solvency ratio stood at 192%, comfortably above the regulatory threshold of 150% in Q1 FY26.

The company outperformed both the overall industry and the private sector, achieving a 70 bps increase in our overall market share to 12.1%, marking a new milestone. Within the private sector, our market share grew by 40 bps, reaching 17.5%.

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.'

HDFC Life is a leading, listed, long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity and health.