Indian insurer HDFC Life's quarterly profit edges higher on policy renewals (updated)

HDFC Life Insurance

16/04/2026 12:08

Adds CEO comments in paragraph 3, new business metrics in paragraph 6-8

April 16 (Reuters) - India's HDFC Life Insurance Company HDFL.NS posted a fall in quarterly new business value on Thursday while reporting a slight profit rise, driven by policy renewals.

India's tax cuts in September have boosted retail insurance demand but analysts had forecast a soft quarter for HDFC Life with new business growth slowing due to weaker sales through banks and as volatile markets made customers wary about market-linked plans.

"Looking ahead, we expect a gradual shift in the product mix as customers rebalance toward long-term savings and protection in an environment of greater uncertainty," HDFC Life MD and CEO Vibha Padalkar said in a statement.

The insurer, a unit of HDFC Bank HDBK.NS, posted a net profit of 4.96 billion rupees ($53.2 million) for the three months ended March 31, compared with 4.77 billion rupees a year ago.

Earlier in the week, peer ICICI Prudential Life ICIR.NS reported a jump in quarterly profit, boosted by new business growth.

HDFC Life's net premium income rose nearly 9% to 258.29 billion rupees, driven by a 14% rise in policy renewals.

Annualised premium equivalent — a key measure of new business — rose 1.3% to 52.54 billion rupees, as per a Reuters calculation, slower than 13% growth in the preceding three months.

Value of new business, or expected profit from new policies, fell 8.4% to 12.61 billion rupees, according to a Reuters calculation, as loss of a tax benefit weighed. Margins on new business declined to 24.2% from 25.6% a year earlier.

($1 = 93.2740 Indian rupees)

 (Reporting by Nishit Navin in Bengaluru; Editing by Mrigank Dhaniwala)

 ((Nishit.Navin@thomsonreuters.com;))