HDFC Life reported a 10% year-on-year growth in Individual Annualized Premium Equivalent (APE) for H1 FY26, translating to a 2-year CAGR of 20%. The company’s market share increased by 90 bps to 11.9% overall. Assets Under Management (AUM) crossed the ₹5 trillion milestone. Profit after tax rose 9% YoY to ₹994 crore. The company plans to raise up to ₹750 crore in subordinated debt in H2 to enhance solvency.
Financial Performance Highlights
HDFC Life’s H1 FY26 demonstrated resilience with Individual Annualized Premium Equivalent (APE) growing by 10% year-on-year. This translates to a healthy 2-year CAGR of 20%. The company outperformed both the overall industry and the private sector, increasing overall market share by 90 bps to 11.9%, and private market share to 16.6%.
Key Growth Drivers
Business momentum was driven by higher average ticket sizes, sustained traction in ULIP and Par products, and resilient demand across income segments. Renewal collections grew by 18% year-on-year. Retail protection grew 27% YoY, outpacing overall company growth.
Product Mix
The product mix in H1 FY26 remained well-balanced, with ULIPs contributing 42%, participating products at 29%, non-par savings at 18%, term at 7%, and annuity at 4%. ULIPs continued to witness strong inflows, driven by positive equity market sentiment and customer appetite for market-linked returns.
Financial Metrics
New business margin in H1 prior to factoring the GST impact was 25%. Post GST, new business margin for H1 was broadly at FY25 levels, at 24.5%. Profit after tax in H1 rose 9% YoY to ₹994 crore. Embedded Value stood at ₹59,540 crore, with an operating RoEV of 15.8% on a rolling 12-month basis. The solvency ratio was at 175%.
Distribution Network
All channels recorded healthy growth during the period. The proprietary channel achieved strong double-digit growth in Q2. Agency channel has delivered a robust two-year CAGR of nearly 20% in H1FY26. Over 50,000 new agents were onboarded on a gross basis in H1 FY26, with 80% from Tier 2 and 3 geographies.
Subsidiary Performance
HDFC Pension Fund Management, continued to deliver robust performance, registering a 37% year-on-year growth in assets under management and maintaining its leadership with over 43% market share. Its AUM nearly reached ₹1.40 lakh crore as of September 30, 2025.
Source: BSE
