HDFC Life Insurance said sales through parent HDFC Bank are recovering after rival insurers ate into its share of the lender’s branch network over the past year.
The pressure came after regulators pushed banks to offer customers a wider choice of insurers. Rivals moved in with cheaper policies, intensifying competition inside HDFC Bank’s branches. That competition and what the insurer called “irrational” pricing has now eased.
HDFC Life’s share of sales through HDFC Bank has climbed back near year-earlier levels, though overall business through the channel stayed subdued.
“Our market share within HDFC Bank has now come back, and as the bank grows, we are very confident of getting good growth from HDFC Bank,” said Vineet Arora, executive director and chief business officer.
The insurer expects to grow at least in line with the industry in fiscal 2027. It sees its value of new business (VNB) margin holding around 25%, matching the June quarter and easing profitability concerns after last year’s tax changes stripped a benefit for insurers.
First-quarter profit rose 12%, lifted by strong policy renewals. The bank channel made up 57% of total sales. Annualised premium equivalent, a key measure of new business, rose 9%, down from 12.5% a year earlier before the competition hit. Value of new business also rose 9%.
Rival ICICI Prudential Life reported a 14.6% rise in APE for the same period.