“Looking ahead, we expect a gradual shift in the product mix as customers rebalance toward long-term savings and protection in an environment of greater uncertainty,” HDFC Life MD and CEO Vibha Padalkar
Mumbai:HDFC Life Insurance posted a fall in quarterly new business value on Thursday while reporting a slight profit rise, driven by policy renewals.
The insurer, a unit of HDFC Bank posted a net profit of Rs496 crorefor the three months ended March 31, compared with Rs477 crore a year ago.
HDFC Life’s net premium income rose nearly 9% to Rs258.29 crore driven by a 14% rise in policy renewals.It has an overall industry market share at 11% in FY 26
“Retail Protection was a clear highlight during the year, with growth of 43%, supported
by lower pricing post GST and a strengthened product portfolio. Annuities were another area of meaningful progress.Looking ahead, we expect a gradual shift in the product mix as customers rebalance toward long-term savings and protection in an environment of greater uncertainty,” HDFC Life MD and CEO Vibha Padalkar said in a statement.
Annualised premium equivalent — a key measure of new business — rose 1.3% to Rs5254 crore as per a Reuters calculation, slower than 13% growth in the preceding three months.
Value of new business, or expected profit from new policies, fell 8.4% to Rs1261 crore according to a Reuters calculation, as loss of a tax benefit weighed. Margins on new business declined to 24.2% from 25.6% a year earlier.
HDFC Bank has infused Rs 1,000 crore in to HDFC Life. The life insurer has issued 1,45,23,906 equity shares of the company having face value of Rs 10 each, at a
price of Rs 688.52 per equity share, aggregating to Rs 1,000 crore, on a preferential basis to the bank.
It has cecommended final dividend of Rs 2.10 per equity share of face value of ₹10 each for the financial year 2025-26, subject to approval of the shareholders’ at the ensuing annual general meeting.
The tenure of Niraj Shah, CFO and executive director, HDFC Life has been extended for another five years with effect from April 26, 2026.
India’s tax cuts in September have boosted retail insurance demand but analysts had forecast a soft quarter for HDFC Life with new business growth slowing due to weaker sales through banks and as volatile markets made customers wary about market-linked plans.
Earlier in the week, peer ICICI Prudential Life reported a jump in quarterly profit, boosted by new business growth.
With Reuters inputs