Slides
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Investor Presentation – 9M FY26
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2 Executive summary: 9M FY26 Revenue & Scale Profitability & Cost Customer & Capital Individual APE Rs (Bn.) 99.9 Growth 11% Renewal premium Rs (Bn.) 284.1 Growth 15% Profit After Tax (PAT) Rs (Bn.) 14.1 Growth 2 7% Value of New Business (VNB) Rs (Bn.) 27.7 Growth 2 7% Solvency Dec’25 180% Sep’25 175% Claim settlement ratio (FY25) Overall 99.8% Individual 99.7% AUM Rs (Bn.) 3,776.5 Growth 15% New Business Margin (NBM) CY 24.4% PY 25.1% 13th month persistency CY 85% PY 87% IEV Rs (Bn.) 615.7 EVOP1 15.6% Total exp. ratio 3 CY 22.5% PY 20.8% Complaints per 10K policies 4 FY25 31 FY24 29 2 1. EVOP is calculated for a 12 month rolling period 2. Normalised VNB growth excluding impact of GST and SSV change is 13% and PAT growth excluding impact of GST and labour code is 15% 3. Total Expense Ratio is calculated as total expenses (including commission) divided by total premium 4. Complaints data (excluding survival and death claims)
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3 32.5 27.7 (0.7) 7.5 (2.1) (3.6) 554.2 619.2 615.7 Opening EV as … Unwind VNB Operating … Investment … Dividend/Capita… Closing EV Impact of GST Closing EV • Healthy Op RoEV of 15.6% on a rolling 12- month basis, a more representative view that smoothens out quarterly seasonality Analysis of change in IEV Rs bn 17%1 12%1 16%1 IEV As at Mar 31, 2025 Unwind VNB Operating variances Dividend & Capital injection IEV As at Dec 31, 2025 Impact of GST & Labour code IEV As at Dec 31, 2025 Economic variances Value of in-force business (VIF)Adjusted Net worth (ANW) 391.4 162.8 438.9 176.8 3 1. YoY growth over metrics as at Dec 31, 2025 2. GST impact: Rs 2.6 bn, Labour code impact : Rs 1.0 bn 2
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4 Rs bn Steady VNB trajectory 7% Note: Numbers may not add up due to rounding off 1. Reflects the impact of difference in mix of segment/distribution channel/tenure/age/sum assured multiple, amongst others 2. Effective October 1, 2024 NBM% 0.0%25.1% (0.2%) VNB Growth 4 25.9 2.7 1.3 (0.6) 29.2 (0.2) (1.3) 27.7 30-Oct-24 Higher EPI New Business Profile1 Expenses Prior to Ext impact Impact of Surr Regs GST Impact 30-Oct-25 (1.1%) 24.4% 9M FY25 Higher EPI New Business Profile1 Expenses GST ImpactImpact of Surr Regs2 9M FY26 1.1% (0.5%) Prior to SSV & GST impact {25.7%} 13%
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Page 5 1 Performance Snapshot Other Business Highlights 3 Life insurance in India 4 2 Business Overview Agenda
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6 125 183 266 395 554 FY17 FY19 FY21 FY23 FY25 9.2 15.4 21.9 36.7 39.6 FY17 FY19 FY21 FY23 FY25 Rs bn Consistent, predictable, sustained performance 1. Based on Overall NBP 2. Excluding single premium 37 71 136 FY17 FY21 FY25 Individual APE 18.8 39.4 89.4 FY17 FY21 FY25 Protection new business1 917 1,738 3,363 Mar 31, 2017 Mar 31, 2021 Mar 31, 2025 Assets under management Holistic growth 108 185 377 FY17 FY21 FY25 Renewal premium 6.8% 9.2% 11.1% FY17 FY21 FY25 Overall market share 81% 85% 87% FY17 FY21 FY25 13th month persistency2 Consistent track record over multiple periods Embedded value Value of new business 6
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7 FY16 FY18 FY20 FY22 FY24 FY25 Change in traditional savings tax exemption limit Tax exemption removed for policies > Rs 5 lakh Grew ~1.5x industry during last decade while sustaining profitability Open architecture Banks allowed to tie up with 3 insurers Loss of exclusivity at HDFC Bank Covid-19 pandemic Lockdown – Face to face communication disrupted Rise in claims Change in ULIP tax exemption limit Tax exemption removed for policies > Rs 2.5 lakh • Tech enablement – faster claim settlement & policy issuance • Prudent risk management • Distribution expansion for tapping new markets – Exide Life M&A, increasing market share in new partnerships NBM1 Indl WRP2 growth Overall industry growth Steady performance across business cycles • Focus on broadening customer base • Upfront investments in distribution infrastructure, technology and manpower to capitalize on the long-term opportunity Consistent product innovation 1. New Business Margin 2. WRP: Weighted Received Premium 3. Adjusting for one-off business due to budget changes in FY23, normalized growth was 11% in FY24. FY24 2- year CAGR stands at 13% • Diversified distribution – Increase in new tie-ups • Growing proprietary – Agency/Direct Surrender value (SV) regulation Increase in SV after completion of 1st policy year 19.9% 23.2% 25.9% 12% 31% 19% 8% 19% 6% 27.4% 16% 16% 26.3% 1%3 5% 25.6% 17% 10% • Restructuring of distributor commercials • Lower impact on relative basis 7
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Consistent track record of maximising shareholder value 1. FY23 VNB was elevated due to budget changes in FY23, 2 year CAGR for FY24 VNB stands at 13% 2. FY22 operating variance includes excess mortality impact due to Covid-19 3. Closing EV for the respective fiscal year 4. Operating ROEV is calculated as annual EVOP (Embedded Value Operating Profit) to Opening EV Healthy VNB accretion driven by strong top-line growth and margin expansion Significant value creation through consistent compounding of EV and VIF across multiple time periods Predictable outcomes over longer time frames Experience in-line with assumptions, resulting in negligible operating variances Steady ROEV across multiple time periods, reflecting sustainable performance Strong focus on balancing profitability and risk management Rs bn 8 Metrics FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 5 year CAGR (FY20-25) 9 year CAGR (FY16-25) Value of new business (VNB) 7.4 9.2 12.8 15.4 19.2 21.9 26.8 36.7 35.01 39.6 16% 20% Operating variances 3.1 2.1 2.0 1.4 1.5 0.8 -4.92 1.6 1.5 1.0 Embedded Value3 102 125 152 183 207 266 300 395 475 554 22% 21% EVOP 18 22 27 31 33 38 51 65 69 79 19% 18% Value in-force (VIF) 70 83 104 124 135 176 212 268 329 391 24% 21% Operating ROEV4 20.7% 21.7% 21.5% 20.1% 18.1% 18.5% 16.6%2 19.7% 17.5% 16.7%
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9 113.8 133.6 FY24 FY25 Steady market share gains in individual WRP 2 Year CAGR Overall mkt share Pvt. mkt share 10.4% 15.4% #2Pvt. mkt rank 11.1% 15.7% #2 Sustained focus on expansion of customer base (NOPs in 000’s) 1,054 1,267 FY23 FY25 Robust delivery across key metrics (1/2) 20% 10% 30% 7% 15% 17% UL Par Non par protection Non par savings Annuity Group retirals 38% 23% 14% 16% 5% 3% Balanced product mix Focus on diversified channel mix 18% 59% 15% 9% Agency Bancassurance Non-bank Alliances Direct 17% 49% 11% 22% Individual APE Individual NBPTotal APE Total NBP 9 88.4 98.2 9M FY25 9M FY26 10.8% 15.3% #2 10.9% 15.1% #2 765 898 9M FY24 9M FY26 8%10% Note: Non-bank Alliances include brokers and other non-bank corporate agents
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10 246 284 9M FY25 9M FY26 87% 61% 85% 63% 13th 61st 9M FY25 9M FY26 _ Improvement in 61st month persistency Group assets under management: Rs 5.3 tn1 Rs bn Healthy VNB growth Steady growth in renewal premium Backed by growing backbook HDFC Life Debt: Equity mix: 68:32 Focus on quality of business and providing superior customer experience VNB grew 13% excluding impact of surrender value regulation and GST change 25.9 27.7 9M FY25 9M FY26 15% YoY Growth 3,287 3,777 1,062 1,558 31st Dec, 2024 31st Dec, 2025 HDFC Life AUM HDFC Pension AUM 1. Group assets under management (AUM) includes AUM of HDFC Life and HDFC Pension (wholly owned subsidiary) 2. Numbers may not add up due to rounding off 4,349Total AUM: 5,334 25.1% 24.4%NBM: 10 YoY Growth Robust delivery across key metrics (2/2) 7%
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11 1 Performance Snapshot Other Business Highlights 3 Life insurance in India 4 2 Business Overview Agenda
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12 Profitable growth Ensuring sustainable and profitable growth by identifying and tapping new profit pools Diversified distribution mix Developing multiple channels of growth to drive need-based selling & deepening penetration Customer first Creating superior product propositions and customer journeys, through consistent innovation Risk management & board governance Maintaining focus on risk management guided by an independent and competent Board Future ready organisation: Leveraging technology, digital and analytics Key elements of our strategy 12
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13 Focus on profitable growth Rs bn Underwriting profits breakup 13.6 7.7 5.9 27.6% FY23 FY25 36.7 Profit after tax (PAT) Shareholders’ surplus Underwriting profits New business Margin Value of new business Economic Profit Accounting Profit 18.0 9.0 9.1 25.6% 39.6 44.2 52.2 61.4 42.3 47.9 -38.3 -45.5 -52.4 -35.6 -42.3 FY23 FY24 FY25 9M FY25 9M FY26 Backbook Surplus New Business Strain 15.7 8.9 6.7 26.3% FY24 35.0 Profitable growth Diversified distribution mix Customer first Risk management & governance Technology, digital & Analytics 13% YoY Growth Note: Numbers may not add up due to rounding off 13 13.3 6.5 6.7 25.1% 9M FY25 25.9 14.1 8.5 5.6 24.4% 9M FY26 27.7
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14 20%-25% 40%-45% 30%-35% 55% - 60% 15% - 20% 20%-25% 0 - 5 years 5 - 15 years > 15 years 65%-70% 30%-35% 0%-1% Profit Emergence ULIP Shift in product profile to longer term savings over last 3-4 years Profit emergence is higher for longer tenure products, albeit over a longer time frame o ~ 3/4th of profits emerge after 5 years EB Surplus emergence as a % of VIF Traditional Savings (Longer Tenure) Protection (Ind+Grp) Higher mix of long term profitable products to result in profit emergence over longer time horizon Track record of positive operating variance indicates high likelihood of profit emergence as per assumptions Profitable growth Diversified distribution mix Customer first Risk management & governance Technology, digital & Analytics 35 45 52 61 20% 19% 20% 19% -10% -5% 0% 5% 10% 15% 20% 25% 0 10 20 30 40 50 60 70 80 FY22 FY23 FY24 FY25 EB (In Bn) EB as a % of VIF Emergence of Existing Business (EB) Surplus 14
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15 Diversified distribution – Partnerships Bancassurance Non-bank alliances • 500+ partners across Banks and Non-Bank alliances with more than 41K partner branches • Partnerships with Banks, NBFCs, SFBs, brokers, aggregators & digital ecosystems allow entry into new market segments • Focus on catering solutions addressing relevant customer segments • Distribution architecture balances scale, diversification and differentiated customer access15 Profitable growth Diversified distribution mix Customer first Risk management & governance Technology, digital & Analytics
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16 Diversified distribution – Proprietary Profitable growth Diversified distribution mix Customer first Risk management & governance Technology, digital & Analytics • Gross agent addition of over 80K in 9M FY26, over 2.6 lakh agents • Underscoring strong advisory-led sales • Distribution architecture built on a blend of established relationships and new-age partnerships • AI-powered tools and data-led insights are boosting agent efficiency and enhancing customer experience Agency: segmented growth • Leveraging AI and business analytics for cross-sell and up-sell • Simplifying and personalizing journeys to offer better customer experience to attract younger customers • Hybrid model launched to ensure opportunity conversion via dedicated tele-sales support with 80% branch coverage Direct/Digital: leveraging analytics On-boarding high performing profiles: home-makers, retired govt servants & financial distributors Higher proportion of protection and retirals business Revamped agent Lifecycle with segmented value propositions for Retail and top performers Deep mining in white spaces through new market expansion and penetration Hyper-personalized customer engagement at every life stage need Levers for future growth 16
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17 Banca Agency Direct2 Non-bank alliances Protection Segment FY24 FY25 9M FY25 9M FY26 UL 40% 43% 40% 51% Par 23% 19% 18% 26% Non par savings 30% 33% 37% 18% Term 2% 2% 2% 3% Annuity 5% 3% 3% 2% FY24 FY25 9M FY25 9M FY26 Based on Total APE 13% 11% 12% 14% Based on NBP 32% 27% 28% 30% Annuity Segment FY24 FY25 9M FY25 9M FY26 UL 26% 26% 26% 26% Par 29% 26% 24% 39% Non par savings 33% 33% 36% 20% Term 7% 10% 10% 12% Annuity 4% 5% 3% 3% UL 43% 37% 34% 33% Par 10% 14% 13% 22% Non par savings 22% 19% 21% 12% Term 6% 8% 8% 9% Annuity 20% 22% 23% 23% UL 18% 37% 35% 38% Par 27% 15% 16% 17% Non par savings 35% 35% 35% 25% Term 15% 11% 13% 18% Annuity 3% 2% 2% 2% FY24 FY25 9M FY25 9M FY26 Based on Total APE 6% 5% 5% 5% Based on NBP 16% 14% 15% 15% Product mix across key channels1 1. Based on Individual APE, Term includes health business. Percentages are rounded off 2. Includes business sourced through web aggregators for previous years 3. Channel classification revised from FY25 onwards; Non-bank Alliances include brokers and other non-bank corporate agents; Select Online/Direct business has been reclassified under Non-bank Alliances 17 Profitable growth Diversified distribution mix Customer first Risk management & governance Technology, digital & Analytics Company Segment FY24 FY25 9M FY25 9M FY26 UL 35% 39% 37% 43% Par 23% 19% 18% 27% Non par savings 30% 32% 35% 19% Term 5% 5% 6% 7% Annuity 6% 5% 5% 4% Higher sum assured policies comprises >1/4th of the UL segment Sequential improvement of 300 bps in Non-par mix to 20% in Q3 Strong momentum post GST: Q3 Term share at 9%
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18 Profitable growth Diversified distribution mix Customer first Risk management & governance Technology, digital & Analytics Rs Bn. Healthy growth in protection 18 Overall Protection mix comprise 1/3rd of the business based on New Business Premium (NBP) in Q3 Retail protection mix (including riders) increased to 11% for Q3, 9% on YTD basis o First-time buyers accounted for over 80% of protection sales (post GST), with a shift toward higher sum assured coverage Credit Protect registered healthy growth of 26% in Q3 and 16% for the period 9MFY26 Maintained leadership in overall sum assured and ranked #2 in individual sum assured o Retail sum assured grew by 33% for the period 9MFY26, and 55% in Q3 FY26 12.8 16.4 9M FY25 9M FY26 4.2 6.1 Q3 FY25 Q3 FY26 Overall protection1 12% 15%12% 14% 27% 33%28% 30% Overall Sum assured 9,895 12,279 9M FY25 9M FY26 3,116 4,318 Q3 FY25 Q3 FY26 #1 #1#1 #1 1. Protection graphs are based on APE Pvt Industry rank Retail protection1 Product mix APE 5.1 7.3 9M FY25 9M FY26 1.8 3.0 Q3 FY25 Q3 FY26 6% 9%6% 7% Product mix NBP
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19 Systematic Pension Plan Participating Pension Sanchay Legacy Protection Sanchay Par Advantage Participating Group Poorna Suraksha Group term insurance Click 2 Protect 3D Plus Protection Pension Guaranteed Plan Annuity Classic One ULIP Sanchay Plus Non-par savings Cancer Care Health FY15-18 FY19-22 FY23-FY26 Sanchay Fixed Maturity Plan Non-par savings QuickProtect Protection Systematic Retirement Plan Annuity Click 2 Protect Supreme Protection Smart Protect Plan ULIP Click 2 Achieve Non-par savings Sanchay Aajeevan Guaranteed Advantage Non-participating Pension Profitable growth Diversified distribution mix Customer first Risk management & governance Technology, digital & Analytics Key product innovations over the years 19 Click 2 Achieve Par Advantage Par Savings Click 2 Protect Elite Plus Protection Click 2 Retire ULIP Pension Smart Pension Plus Annuity
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20 Recent product innovations across categories Learn more about HDFC Life products 20 Profitable growth Diversified distribution mix Customer first Risk management & governance Technology, digital & Analytics A market linked plan which helps secure your family’s future with enhanced protection A savings plan with guaranteed returns and life cover to meet your goals A flexible term plan offering comprehensive financial protection for the entire family. A game changing product that combines joint life coverage with flexibility in lump sum ULIP Non-par savings ProtectionParticipatingNon-par pension An annuity plan for smart retirement with guaranteed income and increasing pension.
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21 Audit Committee Risk Management Committee Investment Committee Policyholder Protection, Grievance Redressal & Claims Monitoring Committee With Profits Committee Corporate Social Responsibility & ESG Committee Nomination & Remuneration Committee Stakeholder’s Relationship Committee Compliance Council Information & Cyber Security Council Investment Council Claims Review Committee Fraud Monitoring Committee Prevention of Sexual Harassment Whistleblower Committee Board Committees Management Committees/Councils Standalone committees Additional governance through internal, concurrent and statutory auditors Independent and Experienced Board Product Management Committee Outsourcing committee Credit Council ALCO1 Risk Management Council Capital Raising Committee Board of Directors Independent and experienced Board 1. Asset Liability Management Council Note: The above list of committees is illustrative and not exhaustive Technology Council Profitable growth Diversified distribution mix Customer first Risk management & governance Technology, digital & Analytics Risk management & board governance 21
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Sensitivity Overall Non par 1 Overall Non par 1 Scenario EV VNB Margin EV VNB Margin EV VNB Margin EV VNB Margin Interest Rate +1% (2.7%) (1.4%) (3.1%) (2.2%) (2.4%) (1.3%) (2.7%) (1.8%) Interest Rate -1% 2.6% 0.9% 2.9% 1.5% 2.4% 0.9% 2.6% 1.0% Sensitivity remains range-bound on the back of calibrated risk management FY25 9M FY26 ~98% of debt investments in Government bonds and AAA rated securities as on Dec 31, 2025 Financial risk management framework 1. Comprises Non par savings (incl annuity) plus protection 22 Profitable growth Diversified distribution mix Customer first Risk management & governance Technology, digital & Analytics Natural hedges ▪ Protection and longevity businesses ▪ Unit linked and non par savings products ▪ Broad-basing of counter-parties for FRAs ALM approach ▪ Target cash flow matching for non par savings plus group protection portfolio to manage non parallel shifts and convexity ▪ Immunise overall portfolio to manage parallel shifts in yield curve (duration matching) Product design & mix monitoring ▪ Prudent assumptions and pricing approach ▪ Average entry age for annuity segment is ~60 years ▪ Deferred as % of total annuity business < 30% with average deferment period <4 yrs ▪ Regular monitoring of interest rates and business mix Partnership approach ▪ External hedging instruments such as FRAs, IRFs, swaps amongst others ▪ Reinsurance
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Give me a simple journey from purchase to payout Give me an integrated experience Give me frictionless service Personalize my experiences DATA-DRIVEN ECOSYSTEM for decision making OMNI-CHANNEL SERVICE to customers In-sync with PARTNER INTEGRATION digitally Nudge me in my world 1 2 3 4 5 Strengthen Cyber Security and Data Compliance Employee facing Virtual Office Unified and intelligent customer Communication 7 8 9 Connecting with startups through Futurance1 6 Building resilience.. Future ready organisation: Leveraging technology, digital and analytics HYPER- PERSONALISATION for customers PLATFORMISATION approach to tech architecture Profitable growth Diversified distribution mix Customer first Risk management & governance Technology, digital & Analytics 1. Futurance: A program to collaborate with startups for harnessing cutting -edge technology 23
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Customer Engagement Process Efficiencies Business Expansion Unlocking growth & efficiency with AI – our key themes Employee Empowerment • Integrated chatbots providing resolution for all queries • Facial Recognition for smooth onboarding • Personalized communications for customer interactions • Auto-generated customer profiles for pre-claims investigation • Real-time visibility leading to enhanced governance • Automated registration and decision for escalations • Context analysis leading to reduced customer complaints • Improved turn around time for employee onboarding • Increased employee productivity • Customer persona-based content generation for sales • AI-powered support system for frontline sales to resolve underwriting and new business operations queries on real time basis 24
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AI initiatives for Business Expansion 25 Employee Onboarding Facial recognition–based verification accelerates employee onboarding while ensuring secure identity checks Achieves 96% automated verification using submitted documents OpsGenie An AI-powered chatbot that resolves operational and underwriting queries in real time 40% of queries are resolved instantly through real-time responses Claims investigator assistant An intelligent reporting tool that speeds up investigation summarization and enhances decision-making Delivers a 30% reduction in average handling time, enabling faster claims resolution Spok AI-driven intent detection and automated routing streamline customer email handling Manages ~1 million interactions annually
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Envisioned tracks for transformation- moving towards execution Reimagining our systems and processes by investing in new technologies and capabilities Centralized communication Hierarchy Management Testing CoE Incentive & Commission Management Data PlatformsCRM Business Process Management Integration & Virtual Office Product configurator Credit Protect processing capabilities Building next-gen of insurance platform: Project Inspire Real-time payouts, personalized nudges, integrated reporting, improved analytics for smarter, faster and more effective sales compensation Newly launched incentive and commission management system 26 Profitable growth Diversified distribution mix Customer first Risk management & governance Technology, digital & Analytics • Zero-touch straight through processing and instant issuance • COI Issuance to members from T+2 to T • Same day claims processing and payout
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27 1 Performance Snapshot Other Business Highlights 3 Life insurance in India 4 Agenda 2 Business Overview
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84% 86% 89% 87% 79% 75% 82% 78% 72% 69% 81% 74%72% 65% 83% 70%67% 46% 77% 61% Savings (Traditional) Savings (UL) Protection Company 13th month 25th month 37th month 49th month 61st month 86% 85% 88% 85% 79% 77% 79% 78% 72% 71% 74% 72%69% 70% 74% 71% 62% 61% 61% 63% Agency Banca Direct Company 13th month 25th month 37th month 49th month 61st month Persistency trends for HDFC Life Across key channels Across key segments CY (9M FY26) PY (9M FY25) 28
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Sensitivity analysis: H1 FY26 Analysis based on key metrics Scenario Change in VNB Margin 1 % Change in EV Change in Reference rate Increase by 1% (1.2%) (2.5%) Decrease by 1% 0.9% 2.5% Equity Market movement Decrease by 10% (0.3%) (1.5%) Persistency (Lapse rates) Increase by 10% (1.5%) (0.3%) Decrease by 10% 1.5% 0.3% Maintenance expenses Increase by 10% (0.7%) (0.9%) Decrease by 10% 0.7% 0.9% Acquisition Expenses Increase by 10% (2.4%) NA Decrease by 10% 2.4% NA Mortality / Morbidity Increase by 5% (1.7%) (1.2%) Decrease by 5% 1.7% 1.2% Tax rate 2 Increased to 25% (4.5%) (9.3%) 1. Post overrun total VNB for Individual and Group business 2. The tax rate is assumed to increase from 14.56% to 25% and hence all the currently taxed profits in policyholder/shareholder segments are taxed at a higher rate. It does not allow for the benefit of policyholder surplus being tax-exempt as was envisaged in the DTC Bill29
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45% 34% 16% 15% 10% 8% 8% 7% Insurer 2 Insurer 7 Insurer 6 Insurer 3 Insurer 4 Insurer 8 Insurer 5 89% 61% 54% 44% 36% 30% 23% 23% Insurer 2 Insurer 3 Insurer 4 Insurer 5 Insurer 6 Insurer 7 Insurer 8 Tier 11 Tier 32 Spontaneous awareness (Private insurers) Focus on category creation and deeper regional connect, supported by large campaigns: New branch launch - Modular approach Educating the audience on category/product/ brand Hyper- localization Content amplified through local influencers • Announcements, hoardings, regional PR, vernacular collaterals • Regional and local festivals, PR • Promotion through: schools, RWAs 3, traffic barricades • Customer/Investor connect programs through training institutes, local media • Tapping the potential of ‘social media influencers’, to micro-target the audience Increased awareness across tier 3 markets 1. Tier 1: Kantar Syndicated Brand Track (Nov’25) 2. Tier 3: Ipsos Customised Brand Track (Sep’25) 3. Resident Welfare Association 30
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ESG at a Glance • Women now represent 28% of our workforce, a 10% increase in gender diversity over the last decade • Workshops, fireside chats and campaigns designed to foster inclusion and allyship, highlighting the unique journeys of women, LGBTQIA+ community and more • Our 'Swabhimaan' CSR program delivered 24 initiatives in 19 aspirational districts, reaching over ~9.1 L beneficiaries and advancing 14 UN SDGs • Micro-insurance products for financial inclusion covered over 6.7 million lives • Localized insurance awareness initiatives drove engagement through culturally relevant, vernacular campaigns to expand reach and build trust • DEI Champion award (2 nd runner up) by Bombay Chambers of Commerce and Deloitte • Board approved Environment & Climate Change Policy • Climate disclosures aligned with TCFD • Conducted Climate Risk Assessment and scenario analysis • Since 2022, all offices undergoing interior or ambience upgrades have been equipped with LED lighting • Existing fixtures across all locations have been transitioned to energy-efficient LED lights • Since FY24, we have transitioned to using 5- star rated equipment across all offices, wherever applicable and available • Robust ESG Governance structure led by Board CSR & ESG Committee and executive ESG Management Committee • ESG Governance Committee ensures integration of ESG factors into fund management and investee engagement, guided by the Responsible Investment & Stewardship Policy • As part of our Responsible Investing approach, overseen by the ESG Governance Committee: • Sustainable Equity Fund grew over 30% in FY25 • Assigned ESG ratings to 96.27% active listed equity AUM and 69% of corporate fixed income AUM • Submitted second UN-PRI Report, building on voluntary reporting initiated in FY23 nvironment ocial overnance 31 MSCI has upgraded our ESG rating to ‘AA’ from ‘A’
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Financial and operational snapshot (1/2) Rs bn. 9MFY26 9M FY25 FY25 FY24 FY23 New Business Premium (Indl. + Group) 245.5 223.9 333.7 296.3 290.9 Renewal Premium (Indl. + Group) 284.1 246.2 376.8 334.5 284.5 Total Premium 529.7 470.1 710.5 630.8 575.3 Individual APE 99.9 89.9 136.2 115.1 114.0 Overall APE 113.9 102.9 154.8 132.9 133.4 Profit after Tax 14.1 13.3 18.0 15.7 13.6 - Policyholder Surplus 5.6 6.7 9.1 6.7 5.9 - Shareholder Surplus 8.5 6.5 9.0 8.9 7.7 Dividend Paid 4.5 4.3 4.3 4.1 3.6 Assets Under Management 3,777 3,287 3,363 2,922 2,388 Indian Embedded Value 615.7 532.5 554.2 474.7 395.3 Net Worth (1) 168.9 151.9 156.8 142.0 129.7 NB (Individual and Group segment) lives insured (Mn.) 33.9 36.6 49.7 66.0 68.5 No. of Individual Policies (NB) sold (In ‘000s) 897.8 876.6 1,267 1,166 1,054 32 1. Comprises share capital, share premium and accumulated profits/(losses) Note: Numbers may not add up due to rounding off
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Financial and operational snapshot (2/2) 9M FY26 9M FY25 FY25 FY24 FY23 Overall New Business Margins (post overrun) 24.4% 25.1% 25.6% 26.3% 27.6% Operating Return on EV (1) 15.6% 17.0% 16.7% 17.5% 19.7% Total Expenses (OpEx + Commission) / Total Premium 22.5% 20.8% 19.8% 19.4% 19.8% Return on Equity (2) 11.6% 12.0% 12.1% 11.5% 11.9% Solvency Ratio 180% 188% 194% 187% 203% Persistency (13M / 61M) 85%/63% 87%/61% 87%/63% 87%/53% 87%/52% Individual WRP Market share 15.1% 15.3% 15.7% 15.4% 16.5% Business Mix (%) - Product (UL/Non par savings/Annuity/Non par protection/Par) (3) 43/19/4/7/27 37/35/5/6/18 39/32/5/5/19 35/30/6/5/23 19/45/5/4/27 - Indl Distribution (Banca/Agency/Non-Bank Alliances/Direct) (3) 59/18/15/9 60/17/14/9 59/18/15/8 59/18/12/11 50/20/17/13 - Total Distribution (Banca/Agency/Non-Bank Alliances/Direct/Group) (4) 25/9/6/11/49 25/8/5/11/50 25/9/6/11/49 24/8/5/12/51 22/9/7/13/49 - Share of protection business (Based on Indl APE) 7.3% 5.7% 5.4% 5.1% 4.1% - Share of protection business (Based on Overall APE) 14.4% 12.5% 11.4% 13.3% 13.3% - Share of protection business (Based on NBP) 30.5% 28.5% 26.8% 32.1% 29.0% 33 Rs bn. 1. EVOP is calculated on a 12 month rolling period 2. Calculated using net profit and average net worth for the period (Net worth comprises Share capital, Share premium and Accumulated profits). Opening net worth for FY23 has been adjusted in line with the scheme of merger approved by the court 3. Based on individual APE. UL: Unit Linked, Trad: Traditional, Par: Participating; Percentages are rounded off 4. Based on total new business premium; Channel classification revised from FY25 onwards; Non-bank Alliances include brokers and other non-bank corporate agents; Select Online/Direct business has been reclassified under Non-bank Alliances
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Segment wise average term and age1 Focus on long term insurance solutions, reflected in longer policy tenures Extensive product solutions catering customer needs across life cycles from young age to relatively older population 1. Based on individual new business policies (excluding annuity) 34 Average Policy Term (Yrs) Average Customer Age (Yrs) 9M FY26: 25.0 (9M FY25: 24.3) 9M FY26: 36.1 (9M FY25: 36.5) 13 36 22 34 16 13 34 21 31 18 Non-par Pension Non-par Protection Non-par Savings Par UL 9M FY26 9M FY26 50 34 37 35 38 50 34 37 36 37 Non-par Pension Non-par Protection Non-par Savings Par UL 9M FY26 9M FY25
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1 Performance Snapshot Life insurance in India 4 Agenda 2 Business Overview Other Business Highlights 3
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1. Invest India 2. Swiss Re 3. People Research on India’s Consumer Economy (PRICE); average size of an household is 4.4 as in 2021 4. Standard Chartered Bank 5. CLSA, NDTV Profit 6. Gross Fixed Capital Formation 7. Economic Times India: poised for sustainable growth The burgeoning middle class and emergence of Bharat Fifth largest and fastest growing economy Rising affluence Investment in physical and digital building blocks to further drive growth India’s GDP (in USD)1 India’s per capita GDPis projected to nearly double from USD 2.4K in 2022 to USD 4.3K by 20322 USD 4,000 USD 2,450 2023 2030 India’s per capita income India’s per capita income is likely to grow by nearly 70% by 20304 30% 2020 2030 30% 91 mn households 46% 165 mn households India’s middle income segment as % of all households3 And just 5 years to add third trillion! Took 67 years to reach first trillion 8 years to add another trillion 1 tn 2 tn 3.5 tn “At average age of 29 years, India to remain the youngest economy till 2070” Demographic dividend- youngest economy1 100 1.45 lakh kms • Total length of National Highways, an increase of 59% in past 9 years 4 • 2nd largest road network after USA • Transactions worth Rs ~2 trillion processed via UPI in FY24, relatively growth in tier 2 and 3 134 bn • Total PLI outlay of >$26bn • Capex distributed evenly across sectors and geographies 5 • GFCF6 to be >30% over the next 5 years5 • Bank credit to be 60% of GDP by FY30 from 50% currently 5 36 Capex target up by 10% to record Rs 11.21 lakh crore in FY26 budget7
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6,264 2,285 2,245 425 244 274 70 Singapore Taiwan Japan Malaysia Thailand China India 7.4% 7.1% 6.8% 3.7% 3.4% 2.8% 2.1% Singapore Taiwan Japan Malaysia Thailand India China Growth opportunity: Under-penetration and favorable demographics Population composition (bn) 35% 29% 26% 58% 61% 59% 7% 10% 15% 2021 2035 2050 Less than 20 years 20-64 years 65 years and above 1.4 1.6 1.7 83% 76% 65% 44% 16% 21% 32% 47% 1% 2% 3% 9% FY12 E FY17 E FY22 E FY30 P < Rs 0.2 mn Rs 0.2 - 1 mn > Rs 1 mn Household distribution by income 256 286 321 385 Number of Households (In mn) 1. Penetration as measured by premiums as % of GDP, 2. Density defined as the ratio of premium underwritten in a given year to the total population Source: Swiss Re, MOSPI, United Nations World Populations Prospects Report 2022 & 2024, CRISIL “The big shift in financialisation” report 2022 Life Insurance penetration 1 (FY24) Life Insurance density US$ 2 (FY24) India remains vastly under-insured, both in terms of penetration and density Bima Trinity initiative to catalyse growth: o Bima Sugam: Unified digital insurance platform o Bima Vistaar: Affordable bundled insurance product o Bima Vahak: Women led rural distribution system Over the next decade, life insurance premiums are projected to grow at 9% annually (real terms), making India the 5th largest LI market globally India’s insurable population estimated to be at ~1 bn by 2035 Number of middle income households is expected to almost double to 181 mn between FY22 and FY30 High proportion of this increase is expected to come from semi-urban and rural areas 37
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India has the highest protection gap in the region Savings and life insurance coverage growth lagged economic and wage growth Protection gap growth rate to grow at ~4% per annum 91.0% 74.0% 71.0% 70.0% 61.0% 55.0% 41.0% India Malaysia Thailand China Japan Singapore Hong Kong Protection gap (2019) 1 Trend of retail loans 3 (Rs Tn.) Retail credit has grown at a CAGR of 16% over last 10 years Credit life need would be spurred by: o Increasing retail indebtedness o Increasing attachment rates o Increasing value penetration o Growing lines of business 17 23 29 39 50 74 FY14 FY16 FY18 FY20 FY22 FY24 332% 252% 251% 153% 143% 127% 23% 62% Singapore Japan USA Malaysia Thailand South Korea India 85% India has the lowest sum assured (SA) as a % of GDP amongst its peers Opportunity for protection growth in life insurance due to: o Rising middle income o Increasing financial literacy o Limited life cover represents Sum Assured as a % of GDP 2 Savings SA Protection SA Life protection: low levels of penetration 1. Swiss Re. India’s protection gap is as of CY22 2. Jefferies “Composite Insurance License in India: Taking a Leaf from Global Experience” report 2022 3. Kotak Institutional Equities 38
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India’s retirement savings gap 2 to grow annually by 10% to reach ~$96Tn in 2050 India’s pension market is under-penetrated at 3% 1 of GDP Improvements in life expectancy will lead to an average post-retirement period of 20 years Average household size has decreased from 4.6 in 2001 to 3.9 in 2018 Total Pension AUM is expected to grow to Rs 118 Tn by 2030 (about 1/4th accounted by NPS) Mandatory schemes to increase coverage for both unorganised and organised sectors Elderly population is expected to increase 2.5x by 2050 3.0 31.3 54.0 90.1 98.3 146.2 India Japan Hong Kong Canada USA Australia 35% 29% 26% 58% 61% 59% 7% 10% 15% 2021 2035 2050 Ageing population Age <20 Yrs Age 20-64 Yrs Age >65 Yrs 128.2 95.7 32.4 24.3 16.4 9.6 China India UK Japan Canada Australia 2050 retirement savings gap ($ Tn.) 95 161 248 Number of people aged >60 years (In mn) Macro opportunity: Retiral solutions Source: Swiss Re: A Retirement lifeline (2023), OECD (2021), Milliman Asia Retirement Report 2017, Survey by NSSO, MoSPI, United Nations World Populations Prospects Report (2022) 1. Comprising pension assets / funds 2. Retirement savings gap = Desired retirement income (i.e. 70% of pre-retirement annual income) - Actual income (i.e. social security benefits + employer benefits + personal savings) 39
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Increasing preference towards financial savings with increasing financial literacy within the population Implementation of JAM trinity. Deposits in PMJDY accounts grew 14x in a decade to 2.23 Lakh Crores by March 2024 o Nearly 90% of people in the country have a bank account, without any sharp urban-rural divide Launch of affordable PMJJBY and PMSBY social insurance schemes Atal Pension Yojana promoting pension in unorganised sector Household savings composition 41% 52% 49% 48% 46% 59% 48% 51% 52% 54% FY13 FY16 FY19 FY22 FY25 Gross financial savings Physical savings 26% Savings as % of personal disposable income 67% 56% 48% 42% 41% 17% 18% 17% 18% 16% 15% 19% 18% 22% 21% 2% 2% 8% 9% 14% 5% 9% 9% 8% FY13 FY16 FY19 FY22 FY25 Currency & deposits Insurance Pension Shares & debentures Small savings Financial savings mix Source: RBI Annual Report, Invest India, Morgan Stanley: India Equity Strategy Playbook, CLSA:India’s Achilles’ heel Life Insurance: A preferred savings instrument 21% 24% 23% 23% 40
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Rs Tn. Life Insurance: Contributing to nation-building Source: CCIL & National Statistics Office, Union Budget, RBI, IRDAI, Ministry of Finance, Bank of America estimates 41 Mobilising Long-Term Capital Life insurers channel household savings into long -term investments Strong exposure to infra and corporate bonds aid economic growth Supporting national growth 15%+ of traditional fund AUM invested in infra & social sectors Lives covered via micro-insurance: 180 Mn ~20% of G-Secs issued are subscribed by life insurers Insuring India Policies issued annually (last 5 years): ~30 Mn Death claims settled in FY24: ₹500 Bn In-force sum assured (Mar 31, 2024): ₹222 Tn 71% 65% 79% 71% 48% 54% 29% 35% 21% 29% 52% 46% FY17 FY19 FY21 FY23 FY25 FY26E <=15 yrs >15 yrs Auction of >15 year maturity bonds has been ~25-30% on an average which facilitates writing annuity business at scale Budget estimate of gross government borrowing for FY26 is at Rs 14.7 trillion 30% of H2 FY26 borrowings in >30-yr segment Year FY17 FY19 FY21 FY23 FY25 FY26E Total 5.3 5.9 12.7 14.1 14.1 14.7 Government bonds - Tenorwise Issuance
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48% 54% 44% 33% 47% 52% 46% 56% 67% 53% FY16 FY18 FY20 FY22 FY25 Unit Linked Conventional 32% 28% 25% 23% 23% 52% 54% 53% 55% 50% 3% 3% 3% 3% 3% 4% 3% 3% 4% 6% 10% 12% 16% 15% 18% FY16 FY18 FY20 FY22 FY25 Agency Corporate Agent (Banks) Corporate Agent (Others) Broker Direct Private sector remained at higher market share than LIC FY16 onwards Amongst private insurers, insurers with a strong bancassurance platform continue to gain market share 54% 58% 60% 66% 71% 73%Private players Market share Growth % Private LIC Overall 26% 12% 8% 24% 15% 13% 15% 5% -3% 7% 1% 1% 21% 9% 3% 19% 10% 10% Individual WRP in Rs bn Product mix 1 Distribution mix 2 Private players are shifting towards ULlPs with a strong focus towards protection Banca remains the dominant channel, supported by expanding bank reach and growing direct channel contribution Source: IRDAI and Life Insurance Council; 1. Based on Overall WRP (Individual and Group) for all private players 2. Based on Individual New business premia for all private players Industry new business trends 287 401 452 684 850 651 246 291 305 356 354 246 FY17 FY19 FY21 FY23 FY25 9M FY26 Private Players LIC 42
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This presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase any securities (“Securities”) of HDFC Life Insurance Company Limited (“HDFC Life” or the “Company”) in India, the United States, Canada, the People’s Republic of China, Japan or any other jurisdiction. This presentation is not for publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). The securities of the Company may not be offered or sold in the United States in the absence of registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any securities in the United States. You confirm that you are either: (i) a “qualified institutional buyer” as defined in Rule 144A under the U.S. Securities Act of 1933, as amended, or (ii) outside the United States. By receiving this presentation, you are agreeing to be bound by the foregoing and below restrictions. Any failure to comply with these restrictions will constitute a violation of applicable securities laws. This presentation should not, nor should anything contained in it, form the basis of, or be relied upon in any connection with any contract or commitment whatsoever. The information contained in this presentation is strictly confidential and is intended solely for your reference and shall not be reproduced (in whole or in part), retransmitted, summarized or distributed to any other persons without Company’s prior written consent. The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify you or any person of such revision or changes. This presentation may contain forward‐looking statements that involve risks and uncertainties. Forward‐looking statements are based on certain assumptions and expectations of future events. Actual future performance, outcomes and results may differ materially from those expressed in forward‐looking statements as a result of a number of risks, uncertainties and assumptions. Although Company believes that such forward‐looking statements are based on reasonable assumptions, it can give no assurance that your expectations will be met. Representative examples of factors that could affect the accuracy of forward-looking statements include (without limitation) the condition of and changes in India’s political and economic status, government policies, applicable laws, the insurance sector in India, international and domestic events having a bearing on Company’s business, particularly in regard to the regulatory changes that are applicable to the life insurance sector in India, and such other factors beyond our control. You are cautioned not to place undue reliance on these forward-looking statements, which are based on knowledge, experience and current view of Company’s management based on relevant facts and circumstances. The data herein with respect to HDFC Life is based on a number of assumptions, and is subject to a number of known and unknown risks, which may cause HDFC Life’s actual results or performance to differ materially from any projected future results or performance expressed or implied by such statements. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Company’s control. Past performance is not a reliable indication of future performance. This presentation has been prepared by the Company. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy , completeness or correctness of the information and opinions in this presentation. None of Company or any of its directors, officers, employees, agents or advisers, or any of their respective affiliates, advisers or representatives, undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise and none of them shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Further, nothing in this presentation should be construed as constituting legal, business, tax or financial advice or a recommendation regarding the securities. Before acting on any information you should consider the appropriateness of the information having regard to these matters, and in particular, you should seek independent financial advice. Disclaimer 43
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Thank You FY25 Annual Report ESG Report FY25 ESG summary Sustainability Factsheet For queries, reach out to the Investor Relations team at investorrelations@hdfclife.com