Vibha Padalkar, Managing Director and CEO, HDFC Life Insurance
Private sector insurer HDFC Life Insurance on Thursday reported a 1.39 per cent year-on-year increase in its standalone net profit to ₹420.73 crore in the third quarter this fiscal, as its profitability was impacted by around ₹98 crore during the period, pursuant to the implementation of the new labour codes.
The insurer had registered a net profit of ₹414.94 crore in the third quarter last fiscal.
“The new labour codes are in place now, and we had to give effect to the labour codes in this period. In line with all companies which have taken a hit in this period, we have also done that. So the impact is about Rs 98 crore on this (Q3FY26) quarter’s profit. That is the reason why the net profit growth is 1.4 per cent. It would have been 15 per cent without looking at the labour codes impact. So, 15 per cent is a normalised number, and it is in line with what we would have wanted to generate and reflect for this period,” Niraj Shah, Executive Director & Chief Financial Officer, HDFC Life Insurance, told businessline.
During the third quarter of this fiscal, net premium income rose 8.77 per cent year-on-year at ₹18,242.39 crore compared to ₹16,771.26 crore in the corresponding period last fiscal.
The first-year premium increased 11.98 per cent y-o-y at ₹3,324.49 crore, whereas renewal premium rose 11.72 per cent y-o-y to ₹10,474.52 crore for the period under review. Single premium witnessed a 1.49 per cent y-o-y increase at ₹5,004.36 crore in Q3FY26, according to a stock exchange filing.
Notably, individual Annualised Premium Equivalent (APE) growth was 13 per cent y-o-y for the third quarter.
For the nine-month period of FY26, total APE grew 11 per cent y-o-y at ₹11,387 crore from ₹10,293 crore for the corresponding period of FY25. Annualised Premium Equivalent is the sum of annualized first year regular premiums and 10 per cent weighted single premiums and single premium top-ups.
Value of New Business (VNB), which is the measure of profitability for a life insurance company, witnessed around 7 per cent y-o-y growth at ₹2,770 crore for 9MFY26, as against ₹2,590 crore for the same period in thr last fiscal. The VNB margin stood at 24.4 per cent, compared to 25.1 per cent in the year-ago period.
“While a better product profile helped us expand margins by 110 basis points, there was an offset largely on account of the GST impact. Our margins ended at 24.4 per cent, translating into VNB growth of 7 per cent y-o-y and a two-year CAGR of 11 per cent for 9MFY26. On an adjusted basis, VNB growth excluding the impact of GST and surrender regulation change would have been 13 per cent for 9MFY26 and 11 per cent for Q3FY26.” said Vibha Padalkar, Managing Director and CEO, HDFC Life Insurance.
Padalkar said the life insurance sector saw an acceleration in momentum during the third quarter this fiscal, supported by recent policy reforms and a rising preference for protection-led solutions. The GST exemption acted as a meaningful catalyst, particularly for the protection segment, improving affordability and driving a pickup in demand.
“Against this backdrop, the industry reported year-on-year growth of around 10 per cent, with HDFC Life growing faster at 11 per cent on individual WRP. As expected, our growth in Q3 outpaced H1, leading to an acceleration in the nine-month growth. This improvement was largely volume-driven, with the number of policies recording double-digit growth during the quarter,” she said.
The company expects this momentum to sustain into the fourth quarter, supporting a balanced and healthy full-year outcome.
“Our product mix in 9MFY26 reflects evolving customer preferences and market trends, with ULIPs contributing 43 per cent, participating products at 27 per cent, non-par savings at 19 per cent, term at 7 per cent and annuity at 4 per cent,” Padalkar added.
Published on January 15, 2026
