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HDFC Life expects new business growth to improve to early-teens in FY27

ICICIdirect Research 02 Sep 2026 DISCLAIMER

News: As per media sources, HDFC Life expects new business growth to improve to early-teens in FY27 from ~9-10% currently, supported by retail term, non-par and annuity products. Management indicated that Q1 growth was impacted by HDFC Bank, which remained flat and accounts for ~33-34% of overall business, while other channels grew ~17%. Retail term grew 42% in Q1, with management expecting growth to sustain above pre-GST levels even as the GST benefit normalises. On product mix, ULIPs are expected to settle at ~40%, non-par at high-20s (currently 25-26%), while annuity, which grew 150%, now contributes ~11%. The company remains open to selective M&A opportunities and expects bancassurance to remain a critical distribution channel, while emphasising the need for a stable regulatory environment.

View: Management commentary indicates improving growth visibility, with diversification across distribution channels and stronger traction in retail term, non-par and annuity expected to support a return to early-teen new business growth. However, recovery in business sourced through HDFC Bank remains important for overall growth acceleration, given its meaningful contribution to the business.

Impact: Neutral

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