HDFC Life Insurance Company (HDFCLIFE) Q2 25/26 earnings summary

Executive summary

• Achieved 10% year-over-year growth in APE and VNB for H1 FY26, with VNB reaching Rs 18.2 Bn and over 70% of new customers being first-time buyers.

• Profit after tax for H1 FY26 rose 9% year-over-year to Rs 9.9 Bn, with stable margins and high claim settlement ratios (99.8% overall, 99.7% individual).

• Renewal premium grew 18% year-over-year to Rs 179.4 Bn, and AUM increased 11% to Rs 3,600 Bn.

• Product mix remained balanced: ULIPs 42%, participating products 29%, non-PAR savings 18%, term 7%, annuity 4%.

• Board approved unaudited financial results and in-principle approval for raising up to ₹750 crore via NCDs.

Financial highlights

• Total premium for H1 FY26 was Rs 333.7 Bn, up from Rs 296.3 Bn in H1 FY25.

• Embedded value stood at Rs 595.4 Bn, with an operating RoEV of 15.8% (rolling 12 months).

• Solvency ratio at 175%, impacted by dividend payouts, subordinated debt repayment, and GST changes.

• Assets under management surpassed Rs 3,600 Bn, including HDFC Pension Fund Management.

• Standalone and consolidated PAT for H1 FY26 were Rs 9.94 Bn and Rs 9.97 Bn, respectively.

Outlook and guidance

• Margin impact from GST to be neutralized over the next two to three quarters through operational adjustments and distributor/vendor negotiations.

• Growth guidance remains in the early teens, with upside possible if GST-driven volume uptick materializes.

• Focus on sustainable, profitable growth by tapping new profit pools, expanding distribution, and investing in technology and analytics.

• Results reflect seasonality; interim period results may not indicate full-year performance.