Mumbai: HDFC Life Q1FY27 delivered steady business performance with Value of New Business (VNB) growing in line with Annualized Premium Equivalent (APE), supported by healthy growth in protection and annuity businesses.
The company reported a 25.0% New Business Margin, while Profit After Tax (PAT) increased 12% year-on-year to ₹611 crore during the quarter ended June 30, 2026.
The Board of Directors of HDFC Life approved and adopted the reviewed standalone and consolidated financial results for the quarter ended June 30, 2026.
The company said 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 due to the ongoing West Asia conflict and its impact on energy prices. HDFC Life said it remains watchful for any material shifts during the year while noting that the long-term, protection-led nature of the life insurance industry continues to remain intact despite regulatory changes.
According to the company, India’s life insurance market continues to offer significant long-term opportunities due to low insurance penetration relative to the country’s economic size and a widening protection gap as household incomes rise.
Commenting on HDFC Life Q1FY27, 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.”
Sharing the financial performance of HDFC Life Q1FY27, 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 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.”
Also Read: HDFC Life FY26 Posts ₹1,910 Crore PAT; Premium Income Rises 12%
Key Highlights of HDFC Life Q1FY27
- Total Annualized Premium Equivalent (APE) increased 9% year-on-year to ₹3,515 crore, while Individual APE grew 7% to ₹2,969 crore.
- Value of New Business (VNB) rose 9% to ₹879 crore, with New Business Margin at 25.0%. Excluding GST impact, VNB margin stood at 25.6%, while VNB growth was 11%.
- Retail protection business recorded 42% growth, with the protection mix expanding by nearly 200 basis points year-on-year to 8%. Including riders, protection contributed nearly 11% of the retail business.
- Retail sum assured grew 31% year-on-year, with the company ranking among the top two players.
- Assets Under Management (AUM) crossed ₹4 lakh crore for HDFC Life and exceeded ₹5.7 lakh crore, including the assets managed by wholly owned subsidiary HDFC Pension Fund Management.
- Renewal premium increased 19% year-on-year to ₹9,023 crore, reflecting continued customer retention.
- Embedded Value (EV) stood at ₹65,860 crore, while the rolling Operating Return on Embedded Value (RoEV) was 14.7%.
- Profit After Tax (PAT) rose 12% to ₹611 crore, while underlying PAT growth excluding GST impact stood at 17%.
- The Solvency Ratio remained healthy at 185%.
- Persistency ratios stood at 84% for the 13-month period and 65% for the 61-month period.
HDFC Life Q1FY27 Financial Performance
During HDFC Life Q1FY27, the company reported:
- Total Premium: ₹17,166 crore, up 15% year-on-year.
- New Business Premium: ₹8,143 crore, up 12%.
- Renewal Premium: ₹9,023 crore, up 19%.
- Assets Under Management: ₹4,00,870 crore, up 13%.
- Indian Embedded Value: ₹65,860 crore, up 13%.
- Profit After Tax: ₹611 crore, up 12%.
- Value of New Business: ₹879 crore, up 9%.
The company maintained an overall individual Weighted Received Premium (WRP) market share of 11.2% during the quarter. Its individual APE product mix comprised 44% ULIP, 22% Non-Par Savings, 11% Annuity, 8% Protection and 15% Participating products, while the distribution mix included 57% Bancassurance, 18% Agency, 15% Non-bank Alliances and 10% Direct business.
