HDFC Life Insurance Company Limited announced its financial results for the quarter and nine months ended December 31, 2025, showcasing strong performance across multiple business parameters. The company demonstrated consistent growth in premium collection, profitability, and asset management while maintaining its market leadership position in India's life insurance sector.

Financial Performance Highlights

The company's financial metrics for the nine-month period reflect robust business momentum. Key performance indicators showed consistent growth across premium segments and profitability measures.

Asset Management and Value Creation

The company's asset management capabilities continued to strengthen during the period. Assets Under Management grew by 15% to ₹3,77,652 crores compared to ₹3,28,684 crores in the previous year. Indian Embedded Value increased significantly by 16% to ₹61,565 crores from ₹53,246 crores, demonstrating the company's enhanced value creation for shareholders. The Value of New Business grew by 7% to ₹2,773 crores.

Key Financial Ratios and Market Position

The company maintained healthy financial ratios despite some variations from the previous year. New Business Margins stood at 24.4% compared to 25.1% in the corresponding period last year. The solvency ratio remained strong at 180%, though slightly lower than the previous year's 188%.

Business Mix and Distribution Strategy

The company's product portfolio showed strategic shifts in business composition. The product mix by Individual APE demonstrated changes across different categories, with Unit Linked products comprising 43% compared to 37% in the previous year, while Non-par savings decreased to 19% from 35%. The distribution mix remained relatively stable, with bancassurance continuing to be the dominant channel at 59% of Individual APE.

Operational Metrics

Persistency ratios showed mixed trends, with 13-month persistency at 85% compared to 87% in the previous year, while 61-month persistency improved to 63% from 61%. The company maintained its market leadership with an individual weighted received premium market share of 10.9%, slightly higher than the previous year's 10.8%.

HDFC Life Insurance Company Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, showing steady growth in profitability despite challenging market conditions. The company reported a net profit after tax of ₹421.00 crores for the quarter, marking a 1.00% increase from ₹415.00 crores in the corresponding quarter of the previous year.

Financial Performance Overview

The company's financial performance for Q3FY26 demonstrated resilience across key metrics. Net premium income for the quarter reached ₹18,242.00 crores, compared to ₹16,771.00 crores in Q3FY25, representing a 9.00% year-on-year growth. The company maintained stable operational metrics with renewal collections growing 15.00% year-on-year.

Business Momentum and Market Share

Individual new business momentum strengthened during the December quarter, with individual annualised premium equivalent growing 11.00% year-on-year, achieving a healthy two-year CAGR of 17.00%. This performance helped the insurer gain 20 basis points of market share, taking its overall industry share for the first nine months of FY26 to 10.90%.

Growth was primarily led by protection-focused products. Retail protection business surged 70.00% year-on-year in Q3, while growth for the nine-month period stood at 42.00%, significantly ahead of the broader industry. This was reflected in the quality of business as well, with retail sum assured rising 55.00% in Q3 and 33.00% over nine months of FY26.

Nine-Month Performance and Value Metrics

For the nine-month period ended December 31, 2025, HDFC Life demonstrated stronger growth momentum. Net profit after tax increased by 7.00% to ₹1,414.00 crores from the previous year. The Value of New Business (VNB) for the nine months rose 7.00% year-on-year to ₹2,773.00 crores, with margins largely stable at 24.40%.

The company noted that margins benefited from a better product mix but were partly offset by the impact of GST changes and labour code-related costs. Excluding these one-time factors, underlying PAT growth for both the quarter and the nine-month period stood at 15.00%.

Operational Metrics and Asset Management

Operational metrics remained stable during the quarter. Persistency ratios were broadly steady, with 13-month persistency at 85.00% and 61-month persistency at 63.00%. Assets under management, including those of its wholly owned pension subsidiary, stood at ₹5.30 lakh crores.

Embedded value stood at ₹61,565.00 crores, with an operating return on embedded value of 15.60% on a rolling 12-month basis. The solvency ratio remained comfortable at 180.00%, supported by ₹749.00 crores of subordinated debt raised during the third quarter.

Corporate Governance and Future Outlook

The Board of Directors approved significant changes to the company's audit structure. KKC & Associates LLP has been recommended for appointment as one of the joint statutory auditors for a four-year term, replacing M/s G.M. Kapadia & Co. after completion of their 10-year tenure.

Management indicated that the pickup in momentum during Q3 was driven by policy reforms and improved affordability following GST exemptions, particularly in the protection segment. The company expects this trend to continue into the March quarter, supporting a balanced full-year performance.