HDFC Life Targets FY27 for VNB Margin Normalization: Vibha Padalkar

• HDFC Life expects VNB margins to normalize by FY27, with near-term pressures from pricing and cost adjustments easing in 2-3 quarters.
• The company is recalibrating its strategy by strengthening product mix, prioritizing protection, and offering enhanced ULIPs and long-term savings solutions.
• Despite short-term GST impact, retail term business surged, and HDFC Life anticipates stronger demand across segments, aiming for long-term penetration.
• HDFC Life maintains a balanced product mix (ULIPs 42%, participating 29%, non-par savings 18%, term 7%, annuities 4%) and saw 9% topline growth in H1 FY26.
• The insurer welcomes 100% FDI, views Bima Sugam as complementary, and seeks regulatory stability and innovation for 2026.

Why It Matters: HDFC Life expects VNB margins to normalize by FY27 through strategic product mix and operational adjustments.