More Stories

Informist, Wednesday, Oct. 15, 2025

 

Please click here to read all liners published on this story

--HDFC Life: Over 70% customers acquired in H1 were first-time buyers 
--CONTEXT: Comments by HDFC Life management in post-earnings analyst concall 
--HDFC Life: Saw 150-bps GST impact on solvency ratio 
--HDFC Life: Impact of GST cuts will be neutralised by end of FY26 
--HDFC Life: Solvency ratio of 180% reasonably comfortable 
--HDFC Life: Product mix in broker channel healthy, giving good margins

 

By Ashutosh Pati and Anjana Therese Antony

 

MUMBAI – HDFC Life Insurance Co. Ltd. is implementing measures to neutralise the impact of the goods and services tax cut and expects to attain the goal by the end of the financial year 2025-26 (Apr-Mar), the company's management said in a post-earnings call with analysts. "...GST impact is there and we have called it out. And we are saying that we will end this year over the next two quarters neutralising that impact," Vibha Padalkar, managing director and chief executive officer of the company, said.

 

The major impact of the GST cut is on the company's unit-linked products, according to the management. The impact on "...the rest of the products (is), in some sense, fairly benign compared to the impact we have on unit-link products, given the cap on charges," it said.

 

HDFC Life said there was an impact of 150 basis points on the solvency ratio after the GST cut. As of Sept. 30, the company's solvency ratio was 175%, lower than 181% in the year-ago period. However, HDFC Life's solvency ratio is well above the regulatory requirement of 150%, and the management believes a solvency ratio of around 180% "is really comfortable for us to continue growing".

 

The life insurer's overall market share rose 90 bps to 11.9% in Apr-Sept. Its market share among private-sector insurers rose 30 bps. The company clocked faster growth in tier-II and tier-III markets than in tier-I cities. More than 70% of the customers it acquired in the first half of the financial year were first-time buyers of insurance, the management said.

 

HDFC Life said its product mix in the broker channel is reasonably healthy and has delivered good margins. "...our growth in the broker channel has been maintaining our share in some of the broker shops," the Mumbai-headquartered company said. Also, the "large growth in the production business happening through some of the counters" has been contributing to its growth in the broker channel, the management said.

 

The insurance player released its quarterly earnings right after market hours Wednesday. Its net profit for the September quarter rose over 3% on year to INR 4.47 billion. Its net premium income grew 13% to INR 187.77 billion. Ahead of the results, its shares ended 2.4% higher at INR 761.15 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.