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Informist, Thursday, Apr. 16, 2026

 

By Kabir Sharma and Shumaila Firoz

 

MUMBAI – HDFC Life Insurance Co. Ltd. plans to grow value of new business margins broadly in line with industry peers, the management of the company said in a call with analysts after it released its earnings on Thursday. The company does not see any structural issues in customer demand or product mix, even as near-term growth was impacted by external factors, the management said. 

 

The insurer's new business margin was 24.2% as of Mar. 31, compared with 25.6% a year ago. But if not for the impact of the goods and services tax cut and a change in regulation, as per which surrender value increases after completion of the first policy year, the insurer's new business margin would have been 25.5% at the end of FY26. 

 

Speaking at the company's post-earnings analyst call, senior executives highlighted that recent volatility in growth was largely cyclical and driven by macroeconomic uncertainty, competitive intensity in certain channels, and regulatory changes, rather than any underlying weakness in the life insurance business model.

 

The company acknowledged that growth in 2025-26 (Apr-Mar) was below expectations, particularly due to a slowdown in the March quarter. This was attributed to softer bancassurance volumes, global uncertainty impacting customer sentiment, and deferment of purchases toward the end of the year, the management said. 

 

However, management stressed that underlying demand trends remain healthy. Customer acquisition metrics continued to be strong, with a large proportion of new buyers entering the insurance ecosystem for the first time. Addressing concern around product mix, the management said changes seen over recent quarters--such as softness in non-participating savings and stronger growth in protection--are part of normal cyclical adjustments rather than a structural shift.

 

On profitability, HDFC Life reiterated its intent to grow margins in line with peers over the medium term. While margins declined in FY26 due to one-off regulatory impacts such as GST changes and surrender value norms, underlying margin drivers remain intact, the company said. At the same time, executives clarified that while the company can return to earlier margin levels, it is not in a "tearing rush" to do so.

 

The life insurance company Thursday reported net profit of INR 4.96 billion for the quarter ended March, up 4% on year. Sequentially, the insurer's profit jumped nearly 18% from INR 4.21 billion in the December quarter.

 

Looking ahead, HDFC Life said it will aim to grow slightly ahead of the industry while maintaining a focus on product quality and sustainable margins. The company is also betting on deeper penetration in tier-2 and tier-3 markets.  End

 

Edited by Akul Nishant Akhoury

 

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