HDFC Life increased the estimated value of its new business by 12% in April–September 2026, slightly ahead of the 11% growth in its standardised premium-sales measure. Its October 15 results also showed costs taking a larger share of premiums and policy-renewal trends moving in different directions.
The Breakdown
Total annualised premium equivalent, or APE, reached ₹8,245 crore in the first half of FY27. APE counts annualised regular and limited-pay premiums, one-year renewable group premiums in full, and 10% of single premiums and top-ups. This standardises different payment patterns; it is not the number of policies sold or total cash premiums received.
Value of new business, or VNB, rose to ₹2,037 crore from ₹1,818 crore a year earlier. It estimates the present value of future shareholder profits from newly written policies, after adjustments for risks and capital costs. The estimate depends on assumptions about claims, expenses, investment conditions and policy renewals; it is not profit already booked in the half-year.
The new-business margin, VNB divided by APE, edged up to 24.7% from 24.5%. That is an increase of 0.2 percentage points. Separately, the insurer’s reported standalone profit after tax rose about 13% to ₹1,119 crore over the same six months.
What Is Driving the Business
Retail protection sales, measured by APE, grew 33%. These products accounted for about 8% of individual APE, up from about 7% a year earlier. That makes protection a faster-growing part of the business, though still a relatively small share of individual sales on this measure.
Renewal premiums from individual and group policies rose 14% to ₹20,443 crore. These are recurring payments received after a policy’s first year, so their growth adds another perspective alongside new sales.
Costs and Renewals Need a Closer Look
The ratio of total expenses, including commissions, to total premiums rose to 22.3% from 21.6%. In other words, HDFC Life reported ₹22.30 of expenses for every ₹100 of premium, compared with ₹21.60 a year earlier. This expense measure has a different denominator from the new-business margin.
Persistency tracks how much eligible business is renewed. The ratios here are premium-based and cover individual policies with regular or limited premium-payment terms. The 13-month ratio fell to 83% from 86%, while the 61-month ratio rose to 66% from 62%.
These measures use a one-month lag and concern different groups of policies at different stages. They should not be read as one group of customers progressing from 83% to 66%. HDFC Life attributed the shifts to changes in customer groups, product mix and equity-market conditions.
Higher renewal receipts can therefore coexist with a weaker early-renewal ratio. For a business that earns money over the life of a policy, the durability of those payments matters alongside the pace of new sales.
The Crunch
HDFC Life’s first-half growth came with a modest new-business margin gain. Higher costs relative to premiums and mixed renewal trends show why sales, future-value estimates and reported profit need to be read together.