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HDFC Life aims to expand and focus on tech amid macro opportunities in FY26
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.
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