Quarterly Financial Results

Canara HSBC Life Insurance Delivers Strong Q1 FY27 Growth with 29% Increase in VNB and 20% PAT Growth

NSE

CANHLIFE

BSE

544583

Canara HSBC Life Insurance Company Limited reported a healthy performance for Q1 FY27, driven by strong growth in new business premiums, profitability, embedded value and assets under management.
The company recorded 19% growth in Total APE, 24% growth in Gross Premium, 29% growth in Value of New Business (VNB) and 20% growth in Profit After Tax (PAT).
The quarter also witnessed improvement in VNB margins, persistency, claim settlement ratio and continued expansion of its distribution network.

PRICE-SENSITIVE TRIGGER

Event: Canara HSBC Life Insurance released its Investor Presentation alongside the Unaudited Financial Results for the quarter ended 30 June 2026.

Type: Quarterly Financial Results

Impact: Positive

Immediate Effect: The company demonstrated broad-based growth across premium collections, profitability and value creation while maintaining healthy operating metrics and customer retention.

Metrics:

Key Metrics:

Individual Weighted Premium Income (WPI): ₹4,698 million (+18% YoY)
Total Annualized Premium Equivalent (APE): ₹5,853 million (+19% YoY)
Renewal Premium: ₹11,174 million (+22% YoY)
Gross Premium: ₹21,611 million (+24% YoY)
Value of New Business (VNB): ₹1,236 million (+29% YoY)
VNB Margin: 21.1% (vs 19.5% last year)
Profit After Tax (PAT): ₹281 million (+20% YoY)
Embedded Value (IEV): ₹73,828 million (+16% YoY)
Operating RoEV: 19.7%
Assets Under Management (AUM): ₹497 billion (+14% YoY)

Operating Metrics:

13-Month Persistency: 85.9% (vs 84.0%)
61-Month Persistency: 55.3% (unchanged)
Claim Settlement Ratio: 98.85% (vs 95.90%)
Total Expense Ratio: 20.7% (largely stable YoY)

Business Mix:

Protection APE increased 42% YoY.
Annuity APE increased 14% YoY.
Product mix continued to shift toward traditional savings and protection products, supporting profitability.

What Happened ?

Canara HSBC Life Insurance continued to outperform the industry during the quarter with healthy premium growth across individual business and strong expansion in profitable new business.

The company benefited from:

Higher premium collections.
Improved VNB margins.
Better customer persistency.
Strong claim settlement performance.
Continued expansion across banking, agency, rural and digital distribution channels.

Management also highlighted continued investments in AI, analytics and technology to improve underwriting, servicing, fraud detection and operational efficiency.

Business & Operational Updates

Distribution Expansion:

The company continues to leverage its diversified bancassurance platform through:

Canara Bank with over 9,800 branches and more than 100 million customers.
HSBC Bank for affluent and NRI customer acquisition.
Expansion across:
- Agency channel
- Regional Rural Banks (RRBs)
- Defence segment
- Digital distribution

The agency force has crossed approximately 1,000 advisors while rural expansion continues through 4,648+ RRB branches.

Technology Initiatives:

The company continues deploying enterprise AI and GenAI capabilities to improve:

Faster policy issuance.
Customer engagement.
Automated quality checks.
Fraud detection.
Risk monitoring.
Employee productivity.
Revenue analytics.

Profitability Drivers:

The improvement in VNB was primarily supported by:

Higher business volumes.
Improved business mix.
Better persistency.
Positive actuarial assumptions.

These factors more than offset higher operating expenses, resulting in 29% YoY growth in Value of New Business and VNB margin expansion to 21.1%.

Risk Analysis

Summary:

Operational execution remains strong with healthy premium growth, improving profitability and disciplined risk management. However, earnings remain dependent on premium growth, customer retention and capital market conditions affecting ULIP products.

Key Risks:

Changes in interest rate environment.
Regulatory changes within the life insurance sector.
Competitive pricing pressures.
Slower premium growth.
Persistency deterioration.
Capital market volatility impacting linked products.

Worst Case:

If premium growth moderates or customer persistency weakens, future VNB margins and profitability could come under pressure despite continued distribution expansion.

Risk Level: Medium

Company Commentary

Management reiterated four strategic priorities:

Expanding distribution reach across banking and alternate channels.
Delivering profitable growth through balanced product mix.
Accelerating AI and advanced analytics adoption.
Maintaining disciplined risk governance and prudent capital management.

The company also highlighted continued focus on customer centricity, digital transformation and scalable distribution to sustain long-term growth.

Official Exchange Filing: Canara HSBC Life Insurance Company Limited

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