HDFC Life Insurance Company Limited announced its financial results for the quarter and nine months ended December 31, 2025. The company reported a profit after tax of ₹1,414 crore, a 7% year-on-year growth. Excluding the one-time impact of new Labor Codes (₹98 crore), the underlying PAT growth would have been 15% for both periods. The company's Value of New Business (VNB) grew by 7% year-on-year to ₹1,414 crore for the nine-month period, with a two-year CAGR of 11%. Adjusted VNB growth, excluding GST and surrender regulation changes, would have been 13% for 9M FY26 and 11% for Q3 FY26. The VNB growth was impacted by expenses related to investments in new branches, people, partnerships, and Project Inspire. Individual APE grew 11% year-on-year, contributing to an overall market share of 10.9% based on individual WRP. Retail protection saw a strong year-on-year growth of 42% for the nine-month period and 70% in Q3. The product mix for 9M FY26 included ULIPs at 43%, participating products at 27%, non-par savings at 19%, term at 7%, and annuity at 4%. Protection share increased to approximately 9% in Q3. The company's solvency ratio remained strong at 180%. Renewal collections grew 15% year-on-year. Despite a moderation in 13-month persistency, the 61st-month persistency remained strong at 63%, improving by 200 basis points year-on-year. Growth was healthy across all distribution channels, including HDFC Bank, other bank partnerships, and the agency channel, which onboarded over 80,000 agents. The company is focused on navigating regulatory changes, including the GST impact, which was contained to less than 200 basis points in Q3, lower than the initial estimate of 300 basis points. HDFC Life aims to neutralize the GST impact over the next couple of quarters and start FY27 on a clean slate. The company remains confident in the long-term prospects of the Indian life insurance sector and expects growth momentum to sustain.
