Canara HSBC Life Insurance Company Limited

Canara HSBC Life Insurance reported robust performance for the 9-month period ended December 31, 2025. Individual Weighted Premium Income (WPI) grew by a healthy 20% year-on-year, with Q3 alone seeing a 29% growth. This allowed the company to outperform both private players, who grew by 13%, and the overall industry, which grew by 10% during the same period. The growth was primarily driven by sustained demand in Unit Linked business, alongside a focused strategy on increasing protection and annuity products.

The Value of New Business (VNB) for the 9 months stood at ₹413 crores, marking a significant 37% year-on-year increase. Despite the impact of GST and new labor code, the New Business Margin (NBM) improved by almost 200 basis points year-on-year to 19.7% for the 9-month period. Management anticipates a full-year GST impact of 185 basis points on VNB margin, a reduction from an initial estimate of 225 basis points due to proactive mitigation efforts.

The company demonstrated strong customer retention, with 13-month persistency rising to 85.6% from 82.5% in FY25, and 61st-month persistency improving to 59.5% from 57.7% in FY25. Concurrently, the total expense ratio for the 9-month period improved by 130 basis points year-on-year to 18.7%. These improvements underscore the strength of customer retention, sales quality, and the long-term sustainability of the growth trajectory.

Growth was observed across key segments, with retail protection business growing almost 3 times quarter-on-quarter and Credit Life business growing 50%. Annuity Annualized Premium (AP) also grew 34% year-on-year, with a focus on deferred annuity. The company launched its agency business in October 2025 and plans a phased scale-up, including opening another 3-4 HSBC branches in the next 3-4 months, to diversify distribution and leverage digital assets.

The Indian Embedded Value (EV) grew 17% year-on-year, reaching ₹6,868 crores, with an operating Return on Embedded Value (ROEV) of 18.2% on a rolling 12-month basis. The solvency ratio stands at a healthy 191%, and the board has approved raising ₹250 crores in subordinate debt to further boost capital and support future growth. Profit After Tax (PAT) for the 9 months increased 8% YoY to ₹92 crores, or 19% YoY to ₹101 crores when excluding a one-off^📎 ₹9 crore impact from the new labor code.

India's GDP growth remains robust at 7.3%, supported by structural reforms and a resilient economy. Recent legislative changes, including the Sabka Bima Sabki Suraksha amendment and increased FDI limits to 100% in insurance, are expected to accelerate universal insurance coverage and attract long-term capital, creating a compelling growth story for the sector. These factors, combined with enhanced policyholder protection and a stronger regulatory framework, provide a very compelling growth story for the insurance sector.