HDFC Life Insurance Company Ltd, a long-term life insurance solutions provider, maintained its position among the top three insurers by individual weighted received premium in FY26, with private sector market share at 15.2% for 11 months.
The company outperformed the industry in key segments, with retail protection growing 43% and the agency channel also expanding ahead of the sector. Retail sum assured growth remained above industry levels, underlining the quality of the business mix.
Growth trends, Q4 impact
HDFC Life, Managing Director & Chief Executive Officer Vibha Padalkar said during earnings call that retail protection saw a rebound in the second half, supported by recovery in the microfinance (MFI) segment and robust credit growth, with the company retaining leadership in the segment.
However, overall FY26 growth fell short of expectations due to a slowdown in Q4. The moderation was attributed to unabsorbed GST impact, temporary softness in bancassurance and demand deferment in March amid global uncertainties.
Despite this, proprietary channels delivered resilient growth of 15–16% in Q4 and for the full year, helping the company post 7% growth in individual annualised premium equivalent (APE).
Financial performance
Net profit rose 6% to ₹1,910 crore. New business APE grew 8% year-on-year, translating into a two-year CAGR of 12%. Value of new business (VNB) stood at ₹4,034 crore, with margins of 24.2%.
Customer metrics remained strong, with over 70% of new customers being first-time policyholders and over 46 million lives insured during the year.
Capital, solvency, expansion
The solvency ratio stood at 177%. The company has received board approval to raise up to ₹1,000 crore via a preferential issue to HDFC Bank, which is expected to add about 900 basis points to solvency.
Over the past 30 months, HDFC Life added more than 250 branches, contributing about 13% to agency channel business. The focus is now shifting to productivity, activation and branch-level profitability.
Subsidiaries, outlook
Its subsidiary, HDFC Pension Fund Management, maintained leadership with a 43% market share and assets under management exceeding ₹1.5 lakh crore. HDFC International Re continued to scale its reinsurance operations from GIFT City.
Padalkar said the company expects a gradual shift in product mix towards long-term savings and protection, with non-par savings, protection and annuities likely to outpace overall growth.
With GST transition largely complete, a supportive yield environment and stronger agency channel, the company expects to outpace industry growth in new business and VNB over the medium term.