HDFC Life Reports Strong FY25 Growth Amid India's Expanding Life Insurance Market

At HDFC Life's 25th Annual General Meeting held in Mumbai, Chairman Keki Mistry analyzed the current macroeconomic environment, life insurance industry trends, and the company's performance for FY25. Globally, economic uncertainties are reducing, though the World Bank has adjusted its growth forecasts downward, projecting a global GDP growth of 2.3% in 2025 and 2.4% in 2026. India, however, is expected to sustain robust economic growth, driven by private consumption and increased capital formation bolstered by favorable government spending and corporate balance sheets.

The Indian life insurance sector experienced mixed trends in FY25, with individual weighted received premiums (WRP) rising by 10%, contrasted by a 7% decline in policy issuances. Private insurers performed more strongly, yielding a 15% increase in total premiums and a 5% increase in policy counts. The total sum assured by Indian life insurers climbed 16% year-on-year to ₹102.6 lakh crores.

Life insurance penetration in India remains low at 2.8%, with a notable protection gap of 91%, the highest in Asia. This underscores significant growth opportunities driven by demographic advantages, rising incomes, digital adoption, and supportive regulatory frameworks. Industry projections estimate India’s life insurance market to grow at a 7.3% compound annual growth rate (CAGR) through 2029, making it the fastest-growing among G20 countries.

HDFC Life reported a 17% increase in individual WRP, a 9% rise in policies issued, and an 8% growth in average ticket size for FY25. The company achieved a record 11.1% market share in individual WRP, solidifying its standing as one of India’s top three private life insurers. Expansion efforts are notably focusing on Tier 2 and Tier 3 cities, leveraging diverse distribution channels including banks, microfinance institutions, and new ecosystem partners.

Overall, HDFC Life continues to advance its mission of enhancing financial protection across India. The company benefits from a broad product portfolio of over 70 insurance options and an extensive distribution network exceeding 500 partnerships spanning banks, NBFCs, SFBs, brokers, and digital providers. This strategic positioning supports sustained growth and resilience in a dynamic market environment.