HDFC Life Q1 Results: Insurance major beats Street estimates with 14% PAT growth; net premium income at Rs 14,466 crore

HDFC Life Insurance Company Q1 FY26 Results: Mumbai-headquartered insurance provider HDFC Life on Tuesday reported a net profit of Rs 546.5 crore for the quarter ended June 30, marking a 14.2 per cent rise over the corresponding period a year ago. That was better than what analysts had expected and driven by 15 per cent growth in backbook profits. 

According to Zee Business research, HDFC Life was estimated to register a net profit of Rs 490 crore for the first quarter of the financial year. 

The insurer’s net premium income–a key measure of an insurance business’s revenue–grew 15.6 per cent to Rs 14,466 crore for the April-June period.

Analysts had pegged the company’s quarterly net premium income at Rs 12,510 crore, according to a regulatory filing. 

The company said its annualised premium equivalent (APE)–a measure of sales performance and growth potential–came in at 12.5 per cent on a year-on-year basis, translating to a two-year CAGR of 21 per cent. 

HDFC Life solvency ratio update

Its solvency ratio–a key metric that determines a business’s ability to meet its long-term financial obligations–stood at 192 per cent for the quarter ended June 30, 2025, as against 194 per cent for the previous three months, and 186 per cent for the April-June 2024 period. That was significantly above the regulatory threshold of 150 per cent, it highlighted. 

HDFC Life’s value of new business (VNB) grew 12.7 per cent to Rs 809 crore. 

Its assets under management (AUM) rose 15 per cent to Rs 3,55,897 lakh crore, as of June 30. 

HDFC Life Insurance management commentary | What CEO says

“Q1 FY26 began on a strong note, with healthy growth across topline, value of new business and steady margins… We outperformed both the overall industry and the private sector, resulting in a 70 bps increase in our market share at the overall level to 12.1 per cent, a new milestone for us, and a 40 bps gain  within the private sector, taking our share to 17.5 per cent,” said Vibha Padalkar, Managing Director and CEO, HDFC Life.

Padalkar said that contrary to initial expectations, demand for ULIPs remained strong during the quarter, supported by sustained strength in equity markets. “However, our ULIP mix remains lower than the industry and broadly range-bound,” said Padalkar, adding: “We anticipate a gradual shift, rather than a sharp swing in favour of traditional products over the course of the year.”

HDFC Life shares

Earlier in the day, HDFC Life Company shares ended lower by Rs 8, or 1.0 per cent, at Rs 757 apiece on BSE.

At the current level, the stock has risen 22.8 per cent so far in 2025, outperforming a 6.1 per cent gain in the headline Nifty50 index.