On Thursday (April 16), long-term life insurance solutions provider HDFC Life Insurance Company Ltd announced a total annualised premium equivalent (APE) of ₹5,254 crore for Q4FY26, falling slightly short of the CNBC-TV18 poll estimate of ₹5,329 crore.
The value of new business (VNB) was ₹1,261 crore, compared to the CNBC-TV18 poll estimate of ₹1,269 crore, with a VNB margin of 24%, exceeding the estimated 23.85% in the poll.
Total APE saw a 1.3% year-on-year rise to ₹5,254 crore, up from ₹5,186 crore in the same period last year, while VNB fell by 8.4% year-on-year to ₹1,261 crore, down from ₹1,376 crore in the previous year’s corresponding quarter. The VNB margin was 24%, down from 26.50% a year ago.
Also Read: HDFC Life Q2 results: Profit rises 3%, net premium income grows 13%
The company reported a 6% year-on-year increase in profit after tax, amounting to ₹1,910 crore for FY26, while the underlying profit growth, excluding one-time impacts from labour code and GST changes, was 16%.
New business, measured by APE, increased by 8% year-on-year, resulting in a two-year CAGR of 12%. The overall industry market share for the company was reported at 11.0%.
For FY26, the value of new business reached ₹4,034 crore, with margins at 24.2%. Excluding the influences of GST and surrender regulations, VNB growth closely matched APE. Adjusted new business margins stood at 25.5%.
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Retail protection continued to show strong growth, increasing by 46% in Q4FY26 and 43% for the full year. The retail protection mix rose by nearly 200 basis points year-on-year to 7.2% in FY26. Including riders, protection products accounted for almost 10% of the retail business.
The retail sum assured increased by 28% year-on-year, reinforcing the company’s leadership in overall sum assured. Assets under management (AUM), including those of its wholly-owned subsidiary HDFC Pension Fund Management, stood at ₹5,30,000 crore.
Persistency ratios remained stable, with the 13-month persistency at 85% and the 61-month persistency at 64%. Renewal collections increased by 15% year-on-year. The embedded value was reported at ₹62,139 crore, with an operating return on embedded value (RoEV) of 15%. After adjusting for GST, labour code, and surrender regulation impacts, the normalized operating RoEV was 15.4%. The solvency ratio was reported at 177%.
Dividend and fundraise
HDFC Life has proposed a final dividend of ₹2.10 per equity share with a face value of ₹10 for the fiscal year 2025-26, pending approval by shareholders at the upcoming annual general meeting. The record date to determine shareholder eligibility for the dividend has been set for Friday, June 19, 2026.
The payment of the dividend will occur on or after July 20, 2026, subject to applicable tax deductions at source.
Also Read: HDFC Life Q1 results: Net profit rises 14%; premium income beats estimates
The company has obtained board approval to raise up to ₹1,000 crore through a preferential issue to its parent, HDFC Bank, to bolster its solvency position.
Shares of HDFC Life Insurance Company Ltd closed at ₹631.55, down ₹9, or 1.41%, on the BSE today, April 16.
