HDFC Life Insurance Company Q1 results: Profit rises 12% YoY to ₹611 crore; VNB up 9%

HDFC Life Insurance Company Q1 results: HDFC Life Insurance Company, on Wednesday, 15 July, reported a 12% year-on-year (YoY) rise in its standalone profit to ₹611.42 crore for the April-June quarter of the current financial year (Q1FY27). In the same quarter last year, the company's profit was ₹546.46 crore.

Value of new business (VNB) for the quarter rose by 9% YoY to ₹879 crore, while new business margins stood at 25% compared to 25.1% YoY.

The company's overall industry market share stood at 11.2% by the end of the quarter.

"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%," said Vibha Padalkar, MD & CEO, HDFC Life.

"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%," Padalkar added.

1. According to the company's exchange filing, its new business, in terms of overall annualized premium equivalent (APE), grew 9% year-on-year, translating into a healthy two-year CAGR of 11%.

2. The company pointed out that the retail protection saw a healthy growth of 42% during Q1FY27, while retail protection mix expanded by nearly 200 basis points year-on-year to 8%, and including riders, protection now contributes nearly 11% of its retail business.

3. Retail sum assured grew by 31% year-on-year, and the company ranked amongst top two players.

4. Its assets under management (AUM), grew by 13% YoY to ₹4,00,870 crore. AUM, including that of its wholly-owned subsidiary HDFC Pension Fund Management, crossed ₹5.7 lakh crore.

5. Embedded value (EV) stood at ₹65,860 crore, with rolling operating RoEV of 14.7%.

“New business margin for the quarter was 25%; excluding the impact of GST, the margin would have been 25.6% compared to 25.1% in the same period last year. We crossed an important milestone during the quarter with assets under management crossing ₹4 lakh crore. Excluding GST impact, underlying PAT growth for the quarter stood at 17%," said Niraj Shah, ED and CFO, HDFC Life.

HDFC Life Insurance Company share price ended 2.41% higher at ₹568.45 on the BSE on Wednesday.

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