HDFC Life Insurance Company , one of India's leading private life insurers, reported a robust performance for the first quarter, with significant growth in profit and market share.

Strong Financial Performance

The insurer posted a 14% year-on-year increase in standalone net profit to Rs 546.00 crore for Q1, up from Rs 478.00 crore in the same quarter last year. This growth was primarily driven by a 15% increase in backbook profits.

Net premium income rose by 16% year-on-year to Rs 14,466.00 crore, reflecting strong growth across business segments. The company's total premium, including first year, renewal, and single premiums, reached Rs 14,875.00 crore, marking a 16.1% increase from the previous year.

Market Share Gains and Business Growth

HDFC Life continued to outperform the industry, with its overall market share expanding by 70 basis points to 12.1%. In the private sector, the company's market share increased by 40 basis points to 17.5%.

Individual Annualized Premium Equivalent (APE) grew by 12.5% year-on-year, translating into a robust 2-year CAGR of 21%. This growth was supported by a balanced product mix and diversified distribution strategy.

Value of New Business and Margins

The Value of New Business (VNB) grew by 12.7% year-on-year to Rs 809.00 crore, with new business margins improving to 25.1%. This improvement in margins reflects the company's focus on profitable growth and operational efficiency.

Asset Under Management and Embedded Value

HDFC Life's Assets Under Management (AUM) stood at Rs 3,55,897.00 crore as of June 30, representing a 15% year-on-year increase. The company's Indian Embedded Value (IEV) rose to Rs 58,355.00 crore, with an operating Return on Embedded Value (RoEV) of 16.3% on a rolling 12-month basis.

Protection Business and Customer Acquisition

Retail protection continued to grow faster than the company average, delivering a robust growth of 19% year-on-year and a strong 2-year CAGR of 23%. Retail sum assured grew in double digits and registered a 30% CAGR over two years.

Over 70% of new customers acquired in Q1 were first-time buyers with HDFC Life, underscoring the company's customer acquisition strength and deepening presence across Tier 1, 2, and 3 markets.

Management Commentary

Vibha Padalkar, Managing Director and CEO of HDFC Life, commented on the results: "Q1 began on a strong note, with healthy growth across topline, value of new business and steady margins. 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%."

She further added, "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."

Outlook

With its strong performance in Q1, HDFC Life has set a positive tone for the fiscal year. The company's focus on balanced growth, product innovation, and customer-centric approach positions it well to capitalize on the growing life insurance market in India. As the company continues to expand its market share and improve operational efficiencies, it remains well-positioned to deliver sustainable growth in the coming quarters.

HDFC Life Insurance Company Limited , one of India's leading private life insurers, has reported robust financial results for the first quarter, demonstrating solid growth across key metrics.

Strong Top-line Growth

The company recorded a 12.5% year-on-year increase in Individual Annualized Premium Equivalent (APE) to ₹2,777.00 crore, up from ₹2,467.00 crore in the same period last year. This growth translates into a robust 2-year CAGR of 21%, showcasing HDFC Life's consistent performance.

Total APE also grew by 12.5% to reach ₹3,225.00 crore, while the total premium income rose by 16.1% to ₹14,875.00 crore.

Market Share Gains and Profitability

HDFC Life outperformed both the overall industry and the private sector, resulting in a 70 basis points increase in its market share at the overall level to 12.1%, a new milestone for the company. Within the private sector, HDFC Life gained 40 basis points, taking its share to 17.5%.

The company's Value of New Business (VNB) stood at ₹809.00 crore, representing a growth of 12.7% year-on-year. New business margins improved slightly to 25.1% from 25.0% in the same quarter last year.

Profit After Tax (PAT) grew by 14% to ₹546.00 crore, driven by a 15% growth in back-book profits.

Balanced Product Mix and Distribution Channels

HDFC Life maintained a balanced product mix, with Unit-Linked Insurance Plans (ULIPs) contributing 38% of individual APE, participating products at 32%, and non-participating savings at 19%. Protection products accounted for 6% of individual APE.

The company's distribution channels remained diversified:

• Bancassurance: 60% of individual APE
• Agency: 16%
• Non-bank alliances: 15%
• Direct channels: 9%

Strong Financial Position

Assets Under Management (AUM) stood at ₹3,55,897.00 crore as of June 30, marking an increase of 15% year-on-year. The company's solvency ratio remained robust at 192%, well above the regulatory requirement of 150%.

Management Commentary

Vibha Padalkar, Managing Director and CEO of HDFC Life, commented on the results: "We began on a strong note, with healthy growth across topline, value of new business and steady margins. 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%."

She added, "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."

Outlook

HDFC Life remains focused on outpacing industry growth while sustaining its position as a market leader amongst the top 3 insurers in India. The company's strategy is anchored in a balanced product mix, a diversified distribution footprint, and a consistent focus on innovation, customer centricity, and disciplined execution.

With its strong performance in the first quarter, HDFC Life has set a positive tone, demonstrating resilience and adaptability in a dynamic market environment.