ABSLI gains market share and lifts H1 FY’27 VNB margin to 16.1%

Aditya Birla Sun Life Insurance Co. Ltd. reported faster growth than private peers in individual and group first-year premium in H1 FY’27, increasing private-market share and lifting net value of new business (VNB) margin to 16.1% from 11.6%. ABSLI’s group first-year premium (FYP) rose 90% to Rs 4,232 crore, while individual FYP grew 25% to Rs 2,342 crore on its adjusted basis.

How did ABSLI gain market share in H1 FY’27?

ABSLI gained market share by outgrowing both private players and the industry in individual and group FYP during H1 FY’27. Individual FYP grew 25% year on year, compared with 12% for private players and 13% for the industry. Its individual market share among private players reached 5.4%, from 4.9% in the corresponding prior-year period, an increase of 55 basis points.

Individual FYP increased to Rs 2,342 crore in H1 FY’27 from Rs 1,880 crore in H1 FY’26 and Rs 1,578 crore in H1 FY’25. That produced a two-year compound annual growth rate (CAGR) of 22%, compared with 10% for private players and 7% for the industry. ABSLI calculates individual FYP by including 10% of single-premium business.

Group FYP was the larger contributor to premium growth, rising 90% to Rs 4,232 crore in H1 FY’27 from Rs 2,223 crore a year earlier. The increase exceeded growth of 35% for private players and 25% for the industry, while ABSLI’s group market share among private players rose 263 basis points to 9.0% from 6.4%. Group FYP was also above the Rs 2,834 crore reported in H1 FY’25.

Which products supported ABSLI’s higher VNB margin?

ABSLI reported that a shift towards value-accretive products accompanied the increase in VNB margin to 16.1% in H1 FY’27 from 11.6% in H1 FY’26. VNB increased to Rs 424 crore from Rs 238 crore over the same period, following Rs 135 crore in H1 FY’25. The margin was 7.4% in H1 FY’25.

Annuities accounted for 14% of ABSLI’s product mix in H1 FY’27, compared with 6% in H1 FY’26 and 7% in H1 FY’25. Non-participating products declined to 38% from 43% a year earlier, while participating products fell to 10% from 16%. Unit-linked insurance plans represented 34% of the mix, up from 31%, and protection represented 4%, compared with 5% in H1 FY’26.

The Smart Wealth Pension Plan, launched in September 2026, contributed Rs 99 crore in H1 FY’27. Pre-approved sum assured represented 37% of FYP, up from 33% in H1 FY’26, and upsell represented 43% of individual FYP, against 42% a year earlier. ABSLI said maturity and survival benefits are hedged through forward-rate agreements and bond forwards, with counterparty risk managed through multiple parties.

How did ABSLI’s distribution and digital operations change?

ABSLI shifted further towards partnership distribution, which accounted for 72% of business in H1 FY’27, compared with 68% in H1 FY’26 and 65% in H1 FY’25. Partnership-channel business grew 31% to Rs 1,678 crore, while proprietary-channel business increased 10% to Rs 664 crore. The company’s distribution network included 12 banca tie-ups, more than 28,500 bank branches, more than 440 own branches and more than 68,200 agents across more than 4,100 cities.

Product mix differed between the two channels in H1 FY’27. Non-participating products represented 42% of partnership business, compared with 28% of proprietary business, while annuities represented 18% of proprietary business and 13% of partnerships. Unit-linked insurance plans accounted for 33% of proprietary business and 34% of partnership business.

Digital processes covered 100% of new-business onboarding, while digital renewal collection was 85% of individual renewal premium in H1 FY’27. ABSLI reported 92% auto-pay adoption at onboarding and said 99% of customer requests were processed within the turnaround time prescribed by the Insurance Regulatory and Development Authority of India. Automatic underwriting processed 59% of total applications.

The ZARA bot collected about Rs 954 crore, equivalent to 16.9% of individual renewal premium, while more than 140 artificial-intelligence agents were deployed across functions. ABSLI reported a 25% reduction in underwriting turnaround time and 97% adoption of its contactless digital verification process. Renewal premium increased 20% to Rs 5,578 crore from Rs 4,664 crore in H1 FY’26.

How did ABSLI’s premiums, profit and expenses change?

ABSLI’s total gross premium rose 42% year on year to Rs 12,656 crore in H1 FY’27, supported by higher group first-year and renewal premiums. Individual first-year premium, measured at 100% of single premiums for the financial statement, rose to Rs 2,846 crore from Rs 2,053 crore. Group first-year premium increased to Rs 4,231 crore from Rs 2,224 crore.

Operating expenses including commission increased by Rs 461 crore, but the operating-expense-to-premium ratio fell to 21.0% from 24.6%. Profit before tax increased to Rs 146 crore from Rs 106 crore, while profit after tax rose to Rs 90 crore from Rs 74 crore. These profit figures are consolidated and include Aditya Birla Sun Life Pension Management Company Limited.

Persistency was mixed across policy cohorts in H1 FY’27. The 13-month ratio was 83.4%, down from 84.5% in H1 FY’26, and the 25-month ratio was 70.8%, down from 74.6%. The 37-month ratio increased to 69.3% from 66.4%, while the 61-month ratio rose to 60.7% from 58.2%; solvency was 190%, compared with 188% a year earlier.

Conclusion

ABSLI’s H1 FY’27 performance combined premium growth ahead of private peers with gains in individual and group private-market share, as VNB margin increased by 447 basis points year on year to 16.1%. The rise in annuity mix to 14%, higher renewal premium of Rs 5,578 crore and a lower operating-expense-to-premium ratio of 21.0% formed part of the reported operating outcome.

The next measures to watch are management’s plan to grow individual FYP at more than 20% CAGR over the next three years and to keep expanding VNB margin above 20%. ABSLI’s disclosed plan includes growing retail traditional and protection products, credit-life business in the group segment, direct-channel investment, agency expansion, deeper bank-partner coverage and analytics-led upselling.