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Informist, Thursday, Jan. 15, 2026

 

--CONTEXT: HDFC Life Insurance Co mgmt comments in post-result analyst concall

--HDFC Life: Expect growth momentum to sustain in Jan-Mar

--HDFC Life: Seeing traction in previously under-insured segment

 

By Shweta and Sagar Sen

 

MUMBAI/NEW DELHI – HDFC Life Insurance Co. Ltd. expects the growth momentum seen in the December quarter to continue in the March quarter after the government exempted life and health insurance products from goods and services tax, pushing up demand for term and savings insurance products, the management said in a conference call with analysts Thursday. The management said the near-term outlook remains constructive.

 

"The GST exemption acted as a meaningful catalyst, particularly for the protection segment, improving affordability and driving a pickup in demand," Managing Director and Chief Executive Officer Vibha Padalkar said in the post-earnings analyst call. "We expect quarter four to build on the momentum seen in the last quarter, with growth in FY27 [2026-27 (Apr-Mar)] supported by continued strength in protection and sustained demand across saving segments."

 

Earlier in the day, the life insurance company reported a net profit of INR 4.21 billion for the quarter ended December, which was up 1.4% on year. Its net premium income for the quarter rose 8.8% on year to INR 182.42 billion. Net income from investments in the policyholders' account surged to INR 106.51 billion from INR 1.92 billion in the year-ago quarter, pushing the insurer's total income up nearly 72% year over year to INR 290.38 billion.

 

The company saw an increase in demand for its non-participating savings products during the December quarter, and expects this momentum to continue in the March quarter supported by a higher yield curve. The higher yield curve has allowed the company to offer higher returns on these plans, making them attractive for buyers. Non-participating savings products provide guaranteed returns for risk-averse investors.

 

"Non-par (non-participating) savings saw an improvement in Q3 compared to H1...While this trend is encouraging, driving a further pickup in Q4 remains a focus area, supported by a favourable yield curve and the launch of innovative, relevant product variants to strengthen momentum in this category," Padalkar said.

 

The insurer also saw traction in under-insured segment, including self-employed profiles, during the December quarter, underscoring the widening relevance of protection across customers. Within the protection segment, more than 80% were first-time buyers, she added.

 

In the nine months ended December, unit-linked insurance plans accounted for 43% of the company's product mix. Participating products accounted for 27%, non-participating savings 19%, term plans 7%, and annuity plans 4%.

 

For the nine months ended December, the insurer reported a drop of 200 basis points in its 13-month persistency ratio to 85% from 87% in the year-ago period. The 61-month persistency improved 200 bps to 63% from 61% during the Apr-Dec period.

 

The company's value of new business for Apr-Dec was INR 27.73 billion, up 7% on year. As of Dec. 31, the insurer's assets under management stood at INR 3.78 trillion, up 15% on year.

 

On Wednesday, shares of HDFC Life Insurance ended 0.7% lower at INR 743.20 on the National Stock Exchange. Financial markets were closed on Thursday for municipal corporation elections in Maharashtra.  End

 

Edited by Ashish Shirke

 

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