Key Quantitative Figures

  • Individual APE Growth: 7% YoY
  • Overall APE Growth: 9% YoY
  • Weighted Received Premium (WRP) Growth: 8% YoY
  • Value of New Business (VNB): ₹879 crore, up 9% YoY
  • New Business Margin: 25% (improved 100 bps sequentially from Q4 FY26)
  • Profit After Tax: ₹611 crore, up 12% YoY (17% growth excluding GST impact)
  • Embedded Value: ₹65,860 crore
  • Assets Under Management: Exceeded ₹4 trillion
  • Solvency Ratio: 185% (improved post preferential capital issuance)
  • 13-Month Persistency: 84% (moderated by ~200 bps)
  • 61-Month Persistency: 65% (improved by over 150 bps)
  • Renewal Collections Growth: 19%
  • Retail Protection Growth: 42% YoY
  • Credit Protect Growth: 19% YoY
  • Retail Private Market Share: 16.3%
  • GST Impact on Margins: Residual 60 bps (50 bps digested in Q1)

Product Mix (Individual APE)

  • Unit-Linked Products: 44%
  • Non-Par Savings: 22% (exit run rate nearing 25%)
  • Participating Products: 15%
  • Retail Protection: 8% (11% including riders)
  • Annuities: 11%

Channel Performance

  • Agency Channel: Grew 21% YoY
  • Channels excluding HDFC Bank: Collective growth of 17%
  • HDFC Bank Channel: Remained subdued due to softer bank volumes, though market share within bank improved through quarter
  • Non-Bank Alliances: Strong quarter with retail protection growing 60% YoY
  • Proprietary Channels: Grew in excess of 20%

Subsidiary Performance

  • HDFC Pension Fund Management: Market share of 43%, AUM ~₹1.75 lakh crore, delivering 33% YoY growth
  • HDFC International Re: Steady performance with encouraging traction in GIFT City operations

Capital Structure Impact

Preferential capital issuance by HDFC Bank improved solvency ratio to 185%. Additional sub-debt capacity of ₹500 crore provides potential 4% solvency upside.

Forward-Looking Guidance

  • Grow in line with or faster than the industry over FY27
  • Deliver VNB growth broadly in line with APE growth
  • Prioritize growth over margin expansion; expect margins to remain range-bound at current levels (~25%)
  • Expect HDFC Bank channel to progressively contribute to growth as year progresses
  • Expect product mix to remain balanced with non-par savings share improving gradually
  • Target 15-18 month capital runway with current capital and sub-debt capacity

Management Commentary

Growth was broad-based with strong customer acquisition (number of policies growing double digits). The company is working to improve persistency through customer engagement and collections. Variable annuity proposition launched in Q4 FY26 now accounts for nearly half of annuity mix. The company remains confident in its diversified distribution franchise and disciplined approach to pricing and capital.