Mumbai: HDFC Life Insurance reported a steady 7 percent increase in net profit to Rs 1,414 crore for the nine months ended December 31, 2025 (9MFY26), driven by strong growth in retail protection business
and consistent premium collections. Despite one-off regulatory costs, underlying profitability grew 15 percent after adjustments.
Premium income sees double-digit growth
HDFC Life's total premium income rose 13 percent year-on-year to Rs 52,965 crore during 9MFY26, with renewal premiums growing 15 percent to Rs 28,415 crore. New business premium (including group business) stood at Rs 24,550 crore, up 10 percent. Assets under management also saw a 15 percent rise to Rs 3.78 trillion, reflecting strong policyholder inflows and market gains.
Retail protection drives segment outperformance
The company’s retail protection segment surged 42 percent year-on-year during the April–December period, with an even sharper 70 percent jump in Q3 alone. This momentum was aided by a GST exemption introduced earlier in the year, which made protection products more affordable. Retail sum assured grew 33 percent for the nine-month period and 55 percent in Q3FY26.
Margins hold steady despite GST impact
While new business margins slipped slightly to 24.4 percent from 25.1 percent a year ago, the company maintained healthy profitability levels. The Value of New Business (VNB) rose 7 percent year-on-year to Rs 2,773 crore. According to CEO Vibha Padalkar, the margin compression was mainly due to regulatory changes including the revised GST structure, but adjusted VNB growth would have been 13 percent without these effects.
Strong capital position and policy retention
The solvency ratio remained healthy at 180 percent, supported by a Rs 749 crore subordinated debt issuance in Q3. Persistency levels—a measure of policy renewals—stood at 85 percent for the 13th month and 63 percent for the 61st month, showing stable customer retention across product tiers.
HDFC Life continues to leverage policy reforms and evolving customer demand for protection-focused products, positioning itself well for a strong Q4 finish.
Disclaimer: This article is based on unaudited financial results filed with stock exchanges and does not offer investment advice.
