Company Overview
HDFC Life Insurance Company is a prominent life insurance provider in India, offering a diversified portfolio that includes Protection, Pension, Savings, and investment-linked insurance products. The company caters to both individual and group customers through multiple distribution channels, including its extensive bancassurance network, agency, brokers, and digital platforms.
Q2 FY26 Earnings Results
HDFC Life Insurance reported revenue of ₹20,651 crore for Q2 FY26, representing a decline of 27.53% year-on-year from ₹28,497 crore. Total expenses dropped by 29.41% to ₹20,336 crore from ₹28,807 crore. Consolidated net profit rose modestly by 2.99% to ₹448 crore, compared to ₹435 crore in the same period last year. Earnings per share (EPS) increased 2.97% to ₹2.08 from ₹2.02 in the previous year.
Operational & Strategic Update
- Premium Growth: Total premium collection (including new business and renewals) stood at ₹14,446 crore, a 15.6% YoY increase, supported by strong renewal premium growth of 19% and solid contribution from the protection and savings portfolios.
- Value of New Business (VNB): The company reported VNB of ₹809 crore, rising 12.7% YoY, with VNB margin at 25.1%, reflecting a focus on high-margin products.
- Market Leadership: HDFC Life gained 70 basis points in overall market share, reaching an impressive 12.1% level, while its private sector share improved to 17.5%.
- Persistency: Persistency rates remained robust—13th month at 86% and 61st month at 64% indicating strong policyholder retention.
- Assets Under Management (AUM): AUM grew 15% YoY to ₹3.56 lakh crore, reflecting continued customer and institutional confidence.
- Solvency Ratio: The solvency ratio of 192% demonstrated strong financial stability and comfortably surpassed the mandated regulatory requirement of 150%.
Outlook
HDFC Life continues to focus on profitable growth through an improved mix of protection, annuity, and savings products. The company aims to widen its customer base through digital innovation and deeper penetration in tier-2 and tier-3 cities. With a solid balance sheet and robust distribution framework, HDFC Life is poised for sustained growth while maintaining its market leadership in the private insurance space.
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