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Business Standard
2 days ago
- Business
- Business Standard
HDFC Life aims to expand and focus on tech amid macro opportunities in FY26
In FY26, as the Indian economy is expected to grow, HDFC Life Insurance is poised to seize macroeconomic opportunities and plans to expand while transforming the ecosystem using technology, Keki Mistry, Chairman of the insurer, said during its 25th Annual General Meeting (AGM). Mistry noted that although risks remain due to ongoing geopolitical tensions, trade uncertainties, and weather-related challenges that could impact growth, the economy is expected to grow in FY26, driven by private consumption and increased fixed capital formation. Investment activity is also likely to improve due to increased capacity utilisation, healthier corporate balance sheets, and sustained government capital expenditure. 'Despite global challenges, our economy showed resilience and steady growth. We remain optimistic about the year ahead,' said Keki Mistry, Chairman, HDFC Life Insurance. The life insurance sector in India saw mixed growth in FY25, with individual weighted received premiums growing by 10 per cent, while the number of policies declined by 7 per cent. Private insurers outperformed, growing 15 per cent in total premiums and 5 per cent in terms of the number of policies. The total sum assured by Indian life insurers rose 16 per cent to ₹102.6 lakh crore by March 2025. However, India's insurance sector remains largely under-penetrated, with life insurance penetration at 2.8 per cent, and the country faces the highest protection gap in Asia, at 91 per cent. 'Insurers are tapping into the opportunity by rapidly expanding into Tier 2 and Tier 3 cities, leveraging the distribution presence of partner banks and microfinance lenders to offer appropriate insurance solutions,' Mistry said. In FY25, HDFC Life's assets under management (AUM) stood at ₹3.36 trillion, with an embedded value of ₹55,423 crore. While the solvency ratio remained robust at 194 per cent, the new business margin for the year was 25.6 per cent, delivering a value of new business (VNB) of ₹3,962 crore. 'Despite challenges such as increased surrender values and an adverse product mix, our new business margins demonstrated resilience, declining by only 70 basis points, thanks to proactive mitigations,' Mistry said. He added that the insurer's customer base expanded to over 5 crore lives. The insurer's subsidiaries – HDFC Pension Management Company – had the highest AUM among pension fund managers, with AUM crossing ₹1.15 trillion. HDFC Life International and Re successfully completed 9 years and expanded its presence across the Gulf Cooperation Council (GCC), the broader Middle East, North Africa, and select emerging markets. 'Looking ahead, we are poised to seize the immense macroeconomic opportunities before us. Our strategy is clear: to expand thoughtfully and purposefully while transforming our entire ecosystem through cutting-edge technology. This tech-led evolution will empower us to deliver an unparalleled, best-in-class experience to every customer we serve,' Mistry concluded.
Time of India
4 days ago
- Business
- Time of India
HDFC Life sees growth outpacing industry despite early-year slowdown
HDFC Life Insurance expects to continue to grow faster amid the expected slowdown in the life insurance industry in the first half (April-September) of this fiscal year. 'I think our view still remains that the industry will be slightly slow for the first half (H1), but we do expect that we will continue to outperform the industry,' said Vineet Arora, Executive Director & Chief Business Officer in a post earnings call with analysts. In the June quarter, the total annualized premium equivalent (APE), a metric of sales growth, rose 12.5% year-on-year to Rs 3,225 crore. This translates into a two-year CAGR of 21%, nearly double of 11% for the industry. According to CareEdge Ratings, the industry slowdown is attributed to the impact of the revised surrender value regulations, which came into effect October 2024, and muted consumer demand. HDFC Life management expects growth to pick up in the second half (October-March) or H2 of the current financial year. 'One is the base effect of last year when the growth in H2 was slower than the growth in H1, so mathematically it should look better. Second, as the fundamentals of the economy move, I think that would be something that we will also have to discover along the way. But so far, we believe that, you know, H2 should be better than H1,' Arora said. Live Events The company's value of new business (VNB) margin stood at 25.1% in April-June, a slight uptick from the previous year of 25%. The management has guided to maintain margins through the year, balancing short-term dynamics with its long-term agenda of sustainable and profitable growth. Niraj Shah, Executive Director & Chief Financial Officer, said that margins are expected to be range-bound this year given that overall growth is expected to be soft. 'Last year, we were talking about 18-20% kind of growth. This year is likely to be lower than that. So, the fixed cost absorption as such, while it will even out through the year, it will still be slightly lower than last year.' He added that there is scope for margin expansion from a three to five years perspective.
Economic Times
4 days ago
- Business
- Economic Times
HDFC Life sees growth outpacing industry despite early-year slowdown
HDFC Life Insurance expects to continue to grow faster amid the expected slowdown in the life insurance industry in the first half (April-September) of this fiscal year. ADVERTISEMENT 'I think our view still remains that the industry will be slightly slow for the first half (H1), but we do expect that we will continue to outperform the industry,' said Vineet Arora, Executive Director & Chief Business Officer in a post earnings call with analysts. In the June quarter, the total annualized premium equivalent (APE), a metric of sales growth, rose 12.5% year-on-year to Rs 3,225 crore. This translates into a two-year CAGR of 21%, nearly double of 11% for the industry. According to CareEdge Ratings, the industry slowdown is attributed to the impact of the revised surrender value regulations, which came into effect October 2024, and muted consumer Life management expects growth to pick up in the second half (October-March) or H2 of the current financial year. 'One is the base effect of last year when the growth in H2 was slower than the growth in H1, so mathematically it should look better. Second, as the fundamentals of the economy move, I think that would be something that we will also have to discover along the way. But so far, we believe that, you know, H2 should be better than H1,' Arora company's value of new business (VNB) margin stood at 25.1% in April-June, a slight uptick from the previous year of 25%. The management has guided to maintain margins through the year, balancing short-term dynamics with its long-term agenda of sustainable and profitable growth. ADVERTISEMENT Niraj Shah, Executive Director & Chief Financial Officer, said that margins are expected to be range-bound this year given that overall growth is expected to be soft. 'Last year, we were talking about 18-20% kind of growth. This year is likely to be lower than that. So, the fixed cost absorption as such, while it will even out through the year, it will still be slightly lower than last year.'He added that there is scope for margin expansion from a three to five years perspective. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
4 days ago
- Business
- Economic Times
ICICI Prudential Life Q1 Results: Profit jumps 34% YoY as premiums rise, costs fall
India's ICICI Prudential Life Insurance on Tuesday reported a 34% rise in first-quarter profit, helped by higher premiums from group policies and lower operating costs. ADVERTISEMENT The life insurer reported a profit after tax of 3.02 billion rupees ($35.2 million) for the quarter ended June 30, compared to 2.25 billion rupees a year before. Its net premium income grew 8% to 85.03 billion rupees, driven by a 20% jump in single premiums. Meanwhile, operating expenses decreased 10.1% aided by lower advertisement and sales related cost, the company said. Analysts said strong growth in group insurance plans during the April-June quarter boosted premium income for insurers. Group insurance policies cover a group of people under one contract and are generally utilised by firms for their employees. ADVERTISEMENT However, growth in market- or unit-linked insurance plans (ULIPs) slowed in the quarter hit by broader market volatility driven by uncertainty over the global impact of policy shifts under U.S. President Donald Trump. ULIPs, which have lower margins, accounted for 46.8% of ICICI Prudential Life's overall product mix, down from 51.4% a year earlier. ADVERTISEMENT Annualised premium equivalent sales, a key metric that gives annualised total value of all single premium and recurring premium policies, fell 5% to 18.64 billion rupees for the June quarter. Value of new business (VNB), or expected profit from new policies, fell 3.2% to 4.57 billion rupees for the quarter. ADVERTISEMENT The company's VNB margin rose slightly to 24.5% for the quarter, compared to 24% a year ago. This was supported by the company's reducing shares of its lower-margin, market or unit-linked insurance plans (ULIP). ADVERTISEMENT Peers HDFC Life Insurance and SBI Life Insurance are yet to report their quarterly results. ($1 = 85.7800 Indian rupees). (You can now subscribe to our ETMarkets WhatsApp channel)
Mint
4 days ago
- Business
- Mint
Stocks to watch: HCL Tech, Tata Tech, Rallis India, HDFC Life among shares in focus today amid Trump's tariff news
Shares of HDFC Life Insurance, HDB Financial, ICICI Lombard, Just Dial will remain in focus as companies will declare Q1 results today. HCL Technologies posted a 10% year-on-year decline in its consolidated net profit for the first quarter of FY26, reporting ₹ 3,843 crore compared to ₹ 4,257 crore in the same period last year. For the June quarter, Tata Technologies posted a net profit of ₹ 170 crore, marking a 10% decline from ₹ 189 crore reported in the March quarter. The state-owned company announced that it has secured a ₹ 264 crore (including taxes) work order from East Central Railway for deploying the Kavach system, an indigenously developed Train Collision Avoidance System (TCAS). Rallis India posted a net profit of ₹ 95 crore for the quarter ended June, marking a 98% year-on-year increase. The state-run company announced that it has been awarded a Letter of Award (LOA) by the Delhi Metro Rail Corporation Limited (DMRC) for a project under the Delhi MRTS Phase-IV initiative. Sun Pharma has signed a settlement and licensing agreement with Incyte Corporation to resolve litigation over LEQSELVI (deuruxolitinib). Following this agreement, the company has announced the launch of LEQSELVI in the U.S., where it is approved for treating adults with severe alopecia areata. The company's Board of Directors is scheduled to meet on July 17 to discuss raising funds by issuing equity shares or other securities, either through a rights issue or any other approved method. The company posted a consolidated net loss of ₹ 193.9 crore in the first quarter of FY26, compared to a net profit of ₹ 77.5 crore in the same quarter last year. The infrastructure services company announced that it has bagged two operation and maintenance (O&M) contracts worth ₹ 551.35 crore, excluding taxes, duties, levies, cess, and GST. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
