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.

HDFC Life Insurance Company has announced its financial results for the first quarter, showcasing robust growth across key metrics and anticipating outperformance despite an expected industry slowdown.

Financial Highlights

• Net profit increased by 14% year-on-year to ₹546.00 crore, up from ₹478.00 crore in the same period last year.
• Total premium income rose by 16% to ₹14,466.00 crore.
• Value of New Business (VNB) grew by 12.7% year-on-year to ₹809.00 crore, compared to ₹720.00 crore in the same quarter last year.
• VNB margin increased to 25.1%, up from 25.0% in the same period last year.
• New business premium rose to ₹7,272.00 crore, compared to ₹6,400.00 crore in the same period last year.
• Total Annual Premium Equivalent (APE) reached ₹3,225.00 crore, up from ₹2,866.00 crore year-over-year.
• Individual Annualized Premium Equivalent (APE) saw a strong growth of 12.5% year-on-year.

Market Share and Business Mix

HDFC Life continued to outperform the overall industry and private sector, resulting in:

• A 70 basis points increase in overall market share to 12.1%
• A 40 basis points gain in private sector market share to 17.5%

The company maintained a balanced product mix:

Key Performance Indicators

• Assets Under Management (AUM) grew by 14.7% to ₹3,55,897.00 crore
• 13th month persistency stood at 86%
• Solvency ratio remained strong at 192%, well above the regulatory requirement of 150%

Management Commentary

Vibha Padalkar, Managing Director & 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."

Protection Business Growth

The retail protection segment continued to outperform, 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, reinforcing HDFC Life's position as a market leader in protection.

Future Outlook

Despite an expected slowdown in the first half of the fiscal year, HDFC Life anticipates outperforming the industry. The company's Q1 APE growth of 12.5% year-on-year to ₹3,225.00 crore was double the industry's growth rate. HDFC Life expects growth to pick up in the second half of the fiscal year and aims to maintain VNB margins around 25.1%.

Conclusion

HDFC Life's Q1 results demonstrate the company's resilience and ability to capitalize on market opportunities. With strong growth in net profit, premium income, VNB, improved VNB margin, market share gains, and a balanced product mix, the insurer is well-positioned to maintain its leadership in the Indian life insurance sector and outpace industry growth despite early-year challenges.