Long-term life insurance solutions provider HDFC Life Insurance Company Ltd on Thursday (April 16) reported a total annualised premium equivalent (APE) of ₹5,254 crore for Q4FY26, compared with the CNBC-TV18 poll estimate of ₹5,329 crore.
Value of new business (VNB) stood at ₹1,261 crore versus the CNBC-TV18 poll estimate of ₹1,269 crore. VNB margin came in at 24%, compared with the CNBC-TV18 poll estimate of 23.85%.
Total APE rose 1.3% year-on-year to ₹5,254 crore, compared with ₹5,186 crore in the same period last year, while VNB declined 8.4% year-on-year to ₹1,261 crore, versus ₹1,376 crore in the corresponding quarter last year. VNB margin stood at 24%, compared with 26.50% in the year-ago period.
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 at ₹1,910 crore for FY26, while underlying profit growth stood at 16% after excluding one-time impact from labour code and GST changes.
New business, measured by APE, grew 8% year-on-year, translating into a two-year CAGR of 12%. The company reported an overall industry market share of 11.0%.
Value of new business for FY26 stood at ₹4,034 crore, with margins at 24.2%. Excluding the impact of GST and surrender regulations, VNB growth was broadly in line with APE. New business margins, adjusted for these factors, stood at 25.5%.
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Retail protection continued to see strong traction, growing 46% in Q4FY26 and 43% for the full year. The retail protection mix expanded by nearly 200 basis points year-on-year to 7.2% in FY26. Including riders, protection products contributed nearly 10% of the retail business.
Retail sum assured increased 28% year-on-year, with the company maintaining its leadership position in overall sum assured. Assets under management (AUM), including that 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 grew 15% year-on-year. Embedded value stood at ₹62,139 crore, with an operating return on embedded value (RoEV) at 15%. Adjusted for GST, labour code and surrender regulation impact, the normalised operating RoEV was 15.4%. The solvency ratio was reported at 177%.
Dividend and fundraise
HDFC Life has recommended a final dividend of ₹2.10 per equity share of face value ₹10 each for the financial year 2025-26, subject to approval by shareholders at the ensuing annual general meeting. The company has fixed Friday, June 19, 2026, as the record date to determine shareholder eligibility for the final dividend.
The dividend payment will be made on or after July 20, 2026, subject to deduction of tax at source at the applicable rate.
Also Read: HDFC Life Q1 results: Net profit rises 14%; premium income beats estimates
The board, based on the recommendation of the Nomination and Remuneration Committee, has considered and approved the re-appointment of Niraj Shah as ED and CFO of the Company for a period of five years with effect from April 26, 2026, subject to approval of the shareholders at the ensuing AGM and Insurance Regulatory and Development Authority of India.
HDFC Life has approved the issuance of 1.45 crore equity shares of face value ₹10 each on a preferential basis to HDFC Bank Ltd, the promoter of the company. The shares will be issued at ₹688.52 per equity share, aggregating to ₹1,000 crore.
Shares of HDFC Life Insurance Company Ltd ended at ₹631.55, down by ₹9, or 1.41%, on the BSE today, April 16.
