Management Transition

  • Anup Bagchi's tenure as MD & CEO ended on October 13, 2026
  • Sidharatha Mishra appointed as MD & CEO for 5 years beginning October 14, 2026, subject to requisite approvals
  • Mishra assumed COO role from October 6, 2026
  • No change in company strategy announced

Financial Performance H1-FY2027

  • VNB: ₹12.83 billion, growth of 22.3% YoY
  • VNB Margin: 26.0% (130 bps expansion from FY2026 full-year margin of 24.7%)
  • Total Premium: ₹245.05 billion, growth of 15.3% YoY
  • New Business Premium: ₹118.21 billion, growth of 25.0% YoY
  • Number of Policies: 10.6% growth YoY
  • Profit After Tax: ₹7.60 billion, growth of 26.5% YoY
  • Embedded Value: ₹566.69 billion, growth of 12.2% YoY
  • Value of In-Force Business: ₹423.89 billion, growth of 12% YoY
  • Assets Under Management: ₹3.29 trillion as of September 30, 2026

Business Mix Performance

  • Sum Assured: ₹8.81 trillion, growth of 30.1% YoY
  • Sum Assured Market Share: 11.5%
  • Retail Sum Assured: ₹2.32 trillion, growth of 34.9% YoY
  • Protection APE: Growth of 39.5% YoY
  • Protection Mix: 23.4% of APE (vs 19.3% in H1-FY2026)
  • Savings Business Mix: 76.6% of APE (vs 80.7% in H1-FY2026)
  • Savings APE: ₹37.79 billion, growth of 9.3% YoY

Product Segment Performance

  • Annuity Segment: 50% YoY growth
  • Linked Business: 6.6% YoY growth
  • Non-linked Savings: Declined 4.5% YoY
  • Group Funds Business: 48% YoY growth
  • Non-par Mix: Increased in Q2 vs Q1-FY2027 (60:40 par to non-par split)

Channel Performance

  • Agency Channel: ₹11.02 billion, growth of 3.3% YoY (Q2 growth 4.1% YoY)
  • Direct Channel: ₹6.79 billion, growth of 10.9% YoY
  • Proprietary Channels Contribution: 46.1% to retail business
  • Bancassurance: Growth of 4.6% YoY, contributed 27.4% to APE
  • Partnership Distribution: Growth of 34.1% YoY, contributed 14.8% to APE
  • Group Business: Growth of 39.2% YoY, contributed 21.6% to APE

Distribution Network Strength

  • 241,000+ advisors
  • 52 bank partnerships with access to 27,000+ bank branches
  • 1,600+ non-bank partnerships

Operational Metrics

  • Cost to Premium Ratio (ex-GST): 18.3% (reduced 30 bps YoY)
  • Savings Cost to Premium Ratio (ex-GST): 11.6% (reduced 90 bps YoY)
  • Claim Settlement Ratio: 99.3%
  • Average Turnaround Time: 1.1 days for non-investigated claims
  • Early Claim Ratio: 23% (best-in-class)
  • Claim Payments: ₹26.27 billion death claims settled; ₹86.34 billion maturity and survival benefits paid
  • 13th Month Persistency: 84.5%
  • 25th Month Persistency: 76.2% (from 77% in June)
  • Same-day Policy Issuance: 54% of savings policies

Capital & Ratings

  • Solvency Ratio: 229.9%
  • Sub-debt Programme: ₹26 billion rated [ICRA] AAA (Stable)
  • NPA Record: Zero NPAs since inception

Regulatory Developments

  • IRDAI consultation paper on recalibrating insurance distribution economics
  • Focus on expense management framework with revised limits and phased glide path
  • Differentiated commission caps proposed
  • Feedback deadline: End of October 2026
  • Company highlighted their cost efficiency journey: Operating expenses (ex-GST and stamp duty) reduced at 8% CAGR over last three years, 22% absolute reduction in FY2026 vs FY2023

Forward-looking Statements (as disclosed)

  • Protection growth expected to moderate from 40-50% levels to more moderate levels in H2-FY2027
  • Strategy remains unchanged: sustainable VNB growth balancing business growth, profitability, and risk prudence
  • Protection and annuity remain central to strategy
  • Focus on proprietary channel growth, micro market strategy, and multi-partner expansion

Q&A Highlights

  • VNB margin expansion primarily driven by product mix shift toward protection
  • GST input tax credit challenge mentioned from September 2025 changes
  • Credit life business discussed as important societal need, particularly for low-income groups
  • Non-par products repriced continuously based on market yields
  • Diverse partnership distribution with no single partner exceeding 5% APE share
  • IFRS and RBC implementation discussed as positive developments for industry transparency

Disclaimer